Correlation Between Anam Electronics and Design
Can any of the company-specific risk be diversified away by investing in both Anam Electronics and Design at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Anam Electronics and Design into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anam Electronics Co and Design Co, you can compare the effects of market volatilities on Anam Electronics and Design 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 Anam Electronics with a short position of Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anam Electronics and Design.
Diversification Opportunities for Anam Electronics and Design
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anam and Design is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Anam Electronics Co and Design Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Design and Anam Electronics 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 Anam Electronics Co are associated (or correlated) with Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Design has no effect on the direction of Anam Electronics i.e., Anam Electronics and Design go up and down completely randomly.
Pair Corralation between Anam Electronics and Design
Assuming the 90 days trading horizon Anam Electronics Co is expected to under-perform the Design. But the stock apears to be less risky and, when comparing its historical volatility, Anam Electronics Co is 4.01 times less risky than Design. The stock trades about -0.05 of its potential returns per unit of risk. The Design Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 375,500 in Design Co on September 12, 2024 and sell it today you would lose (298,200) from holding Design Co or give up 79.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.53% |
| Values | Daily Returns |
Anam Electronics Co vs. Design Co
Performance |
| Timeline |
| Anam Electronics |
| Design |
Anam Electronics and Design Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anam Electronics and Design
The main advantage of trading using opposite Anam Electronics and Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anam Electronics position performs unexpectedly, Design 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 Design will offset losses from the drop in Design's long position.| Anam Electronics vs. Samsung Electronics Co | Anam Electronics vs. Samsung Electronics Co | Anam Electronics vs. SK Hynix | Anam Electronics vs. POSCO Holdings |
| Design vs. Woori Technology Investment | Design vs. SV Investment | Design vs. DB Insurance Co | Design vs. LG Display 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |