Correlation Between Juewei Food and Anji Foodstuff
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By analyzing existing cross correlation between Juewei Food Co and Anji Foodstuff Co, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Anji Foodstuff.
Diversification Opportunities for Juewei Food and Anji Foodstuff
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Juewei and Anji is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Juewei Food 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 Juewei Food Co 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 Juewei Food i.e., Juewei Food and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Juewei Food and Anji Foodstuff
Assuming the 90 days trading horizon Juewei Food Co is expected to generate 1.43 times more return on investment than Anji Foodstuff. However, Juewei Food is 1.43 times more volatile than Anji Foodstuff Co. It trades about 0.22 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.28 per unit of risk. If you would invest 1,226 in Juewei Food Co on September 12, 2024 and sell it today you would earn a total of 804.00 from holding Juewei Food Co or generate 65.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Juewei Food Co vs. Anji Foodstuff Co
Performance |
Timeline |
Juewei Food |
Anji Foodstuff |
Juewei Food and Anji Foodstuff Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juewei Food and Anji Foodstuff
The main advantage of trading using opposite Juewei Food and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.Juewei Food vs. China Petroleum Chemical | Juewei Food vs. PetroChina Co Ltd | Juewei Food vs. China State Construction | Juewei Food vs. China Railway Group |
Anji Foodstuff vs. China Petroleum Chemical | Anji Foodstuff vs. PetroChina Co Ltd | Anji Foodstuff vs. China State Construction | Anji Foodstuff vs. China Railway Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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