Correlation Between Shanghai Rendu and Anji Foodstuff
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By analyzing existing cross correlation between Shanghai Rendu Biotechnology and Anji Foodstuff Co, you can compare the effects of market volatilities on Shanghai Rendu and Anji Foodstuff and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shanghai Rendu with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rendu and Anji Foodstuff.
Diversification Opportunities for Shanghai Rendu and Anji Foodstuff
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Anji is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rendu Biotechnology and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Shanghai Rendu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shanghai Rendu Biotechnology are associated (or correlated) with Anji Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Foodstuff has no effect on the direction of Shanghai Rendu i.e., Shanghai Rendu and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Shanghai Rendu and Anji Foodstuff
Assuming the 90 days trading horizon Shanghai Rendu Biotechnology is expected to generate 1.17 times more return on investment than Anji Foodstuff. However, Shanghai Rendu is 1.17 times more volatile than Anji Foodstuff Co. It trades about 0.17 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.2 per unit of risk. If you would invest 3,501 in Shanghai Rendu Biotechnology on December 4, 2024 and sell it today you would earn a total of 314.00 from holding Shanghai Rendu Biotechnology or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Shanghai Rendu Biotechnology vs. Anji Foodstuff Co
Performance |
| Timeline |
| Shanghai Rendu Biote |
| Anji Foodstuff |
Shanghai Rendu and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rendu and Anji Foodstuff
The main advantage of trading using opposite Shanghai Rendu and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rendu position performs unexpectedly, Anji Foodstuff can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anji Foodstuff will offset losses from the drop in Anji Foodstuff's long position.| Shanghai Rendu vs. Xinjiang Tianrun Dairy | Shanghai Rendu vs. Citic Offshore Helicopter | Shanghai Rendu vs. Springsnow Food Group | Shanghai Rendu vs. Sichuan Hebang Biotechnology |
| Anji Foodstuff vs. China Asset Management | Anji Foodstuff vs. Postal Savings Bank | Anji Foodstuff vs. Zhejiang Construction Investment | Anji Foodstuff vs. Harvest Fund Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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