Correlation Between Anam Electronics and FoodNamoo
Can any of the company-specific risk be diversified away by investing in both Anam Electronics and FoodNamoo 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 FoodNamoo 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 FoodNamoo, you can compare the effects of market volatilities on Anam Electronics and FoodNamoo 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 FoodNamoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anam Electronics and FoodNamoo.
Diversification Opportunities for Anam Electronics and FoodNamoo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anam and FoodNamoo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Anam Electronics Co and FoodNamoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FoodNamoo 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 FoodNamoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FoodNamoo has no effect on the direction of Anam Electronics i.e., Anam Electronics and FoodNamoo go up and down completely randomly.
Pair Corralation between Anam Electronics and FoodNamoo
Assuming the 90 days trading horizon Anam Electronics Co is expected to generate 0.75 times more return on investment than FoodNamoo. However, Anam Electronics Co is 1.33 times less risky than FoodNamoo. It trades about 0.16 of its potential returns per unit of risk. FoodNamoo is currently generating about -0.09 per unit of risk. If you would invest 126,400 in Anam Electronics Co on October 11, 2024 and sell it today you would earn a total of 8,700 from holding Anam Electronics Co or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anam Electronics Co vs. FoodNamoo
Performance |
| Timeline |
| Anam Electronics |
| FoodNamoo |
Anam Electronics and FoodNamoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anam Electronics and FoodNamoo
The main advantage of trading using opposite Anam Electronics and FoodNamoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anam Electronics position performs unexpectedly, FoodNamoo 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 FoodNamoo will offset losses from the drop in FoodNamoo's long position.| Anam Electronics vs. Daesung Hi Tech Co | Anam Electronics vs. Daishin Information Communications | Anam Electronics vs. Samyang Foods Co | Anam Electronics vs. Asiana Airlines |
| FoodNamoo vs. Anam Electronics Co | FoodNamoo vs. Daewoo Electronic Components | FoodNamoo vs. Jeong Moon Information | FoodNamoo vs. Samji Electronics 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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