Correlation Between Shenzhen Noposion and Anji Foodstuff
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Anji Foodstuff Co, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Anji Foodstuff.
Diversification Opportunities for Shenzhen Noposion and Anji Foodstuff
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Anji is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Anji Foodstuff
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 0.81 times more return on investment than Anji Foodstuff. However, Shenzhen Noposion Agrochemicals is 1.24 times less risky than Anji Foodstuff. It trades about 0.22 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.11 per unit of risk. If you would invest 799.00 in Shenzhen Noposion Agrochemicals on September 26, 2024 and sell it today you would earn a total of 355.00 from holding Shenzhen Noposion Agrochemicals or generate 44.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Anji Foodstuff Co
Performance |
Timeline |
Shenzhen Noposion |
Anji Foodstuff |
Shenzhen Noposion and Anji Foodstuff Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Noposion and Anji Foodstuff
The main advantage of trading using opposite Shenzhen Noposion and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
Anji Foodstuff vs. Shenzhen Noposion Agrochemicals | Anji Foodstuff vs. Changjiang Publishing Media | Anji Foodstuff vs. Union Semiconductor Co | Anji Foodstuff vs. Miracll Chemicals Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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