Correlation Between Luyin Investment and Anji Foodstuff
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luyin Investment Group and Anji Foodstuff Co, you can compare the effects of market volatilities on Luyin Investment 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 Luyin Investment with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Anji Foodstuff.
Diversification Opportunities for Luyin Investment and Anji Foodstuff
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and Anji is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Luyin Investment 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 Luyin Investment Group 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 Luyin Investment i.e., Luyin Investment and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Luyin Investment and Anji Foodstuff
Assuming the 90 days trading horizon Luyin Investment is expected to generate 1.47 times less return on investment than Anji Foodstuff. But when comparing it to its historical volatility, Luyin Investment Group is 1.46 times less risky than Anji Foodstuff. It trades about 0.25 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Anji Foodstuff Co on September 15, 2024 and sell it today you would earn a total of 379.00 from holding Anji Foodstuff Co or generate 60.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Luyin Investment Group vs. Anji Foodstuff Co
Performance |
Timeline |
Luyin Investment |
Anji Foodstuff |
Luyin Investment and Anji Foodstuff Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luyin Investment and Anji Foodstuff
The main advantage of trading using opposite Luyin Investment and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment 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.Luyin Investment vs. Focus Media Information | Luyin Investment vs. Guangdong Liantai Environmental | Luyin Investment vs. Beijing SPC Environment | Luyin Investment vs. Dawning Information Industry |
Anji Foodstuff vs. Nanjing Putian Telecommunications | Anji Foodstuff vs. Tianjin Realty Development | Anji Foodstuff vs. Kangyue Technology Co | Anji Foodstuff vs. Shenzhen Hifuture Electric |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |