Correlation Between Shenzhen Noposion and Anji Microelectronics
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Anji Microelectronics Tech, you can compare the effects of market volatilities on Shenzhen Noposion and Anji Microelectronics 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 Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Anji Microelectronics.
Diversification Opportunities for Shenzhen Noposion and Anji Microelectronics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Anji is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Anji Microelectronics Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Microelectronics 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 Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Microelectronics has no effect on the direction of Shenzhen Noposion i.e., Shenzhen Noposion and Anji Microelectronics go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Anji Microelectronics
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to under-perform the Anji Microelectronics. In addition to that, Shenzhen Noposion is 1.21 times more volatile than Anji Microelectronics Tech. It trades about -0.13 of its total potential returns per unit of risk. Anji Microelectronics Tech is currently generating about 0.1 per unit of volatility. If you would invest 14,431 in Anji Microelectronics Tech on October 24, 2024 and sell it today you would earn a total of 747.00 from holding Anji Microelectronics Tech or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Anji Microelectronics Tech
Performance |
| Timeline |
| Shenzhen Noposion |
| Anji Microelectronics |
Shenzhen Noposion and Anji Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Anji Microelectronics
The main advantage of trading using opposite Shenzhen Noposion and Anji Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion position performs unexpectedly, Anji Microelectronics 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 Microelectronics will offset losses from the drop in Anji Microelectronics' long position.The idea behind Shenzhen Noposion Agrochemicals and Anji Microelectronics Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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