Correlation Between Anji Foodstuff and Zotye Automobile
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By analyzing existing cross correlation between Anji Foodstuff Co and Zotye Automobile Co, you can compare the effects of market volatilities on Anji Foodstuff and Zotye Automobile 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 Anji Foodstuff with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Foodstuff and Zotye Automobile.
Diversification Opportunities for Anji Foodstuff and Zotye Automobile
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anji and Zotye is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Anji Foodstuff Co and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Anji Foodstuff 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 Anji Foodstuff Co are associated (or correlated) with Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Anji Foodstuff i.e., Anji Foodstuff and Zotye Automobile go up and down completely randomly.
Pair Corralation between Anji Foodstuff and Zotye Automobile
Assuming the 90 days trading horizon Anji Foodstuff Co is expected to generate 0.69 times more return on investment than Zotye Automobile. However, Anji Foodstuff Co is 1.45 times less risky than Zotye Automobile. It trades about 0.0 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about -0.01 per unit of risk. If you would invest 1,063 in Anji Foodstuff Co on September 28, 2024 and sell it today you would lose (207.00) from holding Anji Foodstuff Co or give up 19.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.79% |
Values | Daily Returns |
Anji Foodstuff Co vs. Zotye Automobile Co
Performance |
Timeline |
Anji Foodstuff |
Zotye Automobile |
Anji Foodstuff and Zotye Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anji Foodstuff and Zotye Automobile
The main advantage of trading using opposite Anji Foodstuff and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Foodstuff position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.Anji Foodstuff vs. Ming Yang Smart | Anji Foodstuff vs. 159681 | Anji Foodstuff vs. 159005 | Anji Foodstuff vs. Loctek Ergonomic Technology |
Zotye Automobile vs. Anji Foodstuff Co | Zotye Automobile vs. Everdisplay Optronics Shanghai | Zotye Automobile vs. Youyou Foods Co | Zotye Automobile vs. Ligao Foods CoLtd |
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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