Correlation Between Value Added and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Value Added and Anam Electronics 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 Value Added and Anam Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Value Added Technology and Anam Electronics Co, you can compare the effects of market volatilities on Value Added and Anam Electronics 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 Value Added with a short position of Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Added and Anam Electronics.
Diversification Opportunities for Value Added and Anam Electronics
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Value and Anam is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Value Added Technology and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics and Value Added 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 Value Added Technology are associated (or correlated) with Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Value Added i.e., Value Added and Anam Electronics go up and down completely randomly.
Pair Corralation between Value Added and Anam Electronics
Assuming the 90 days trading horizon Value Added Technology is expected to under-perform the Anam Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Value Added Technology is 1.17 times less risky than Anam Electronics. The stock trades about -0.26 of its potential returns per unit of risk. The Anam Electronics Co is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 125,000 in Anam Electronics Co on September 2, 2024 and sell it today you would lose (7,600) from holding Anam Electronics Co or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Value Added Technology vs. Anam Electronics Co
Performance |
| Timeline |
| Value Added Technology |
| Anam Electronics |
Value Added and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Value Added and Anam Electronics
The main advantage of trading using opposite Value Added and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Added position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Value Added vs. AptaBio Therapeutics | Value Added vs. KT Hitel | Value Added vs. SillaJen | Value Added vs. Cytogen |
| Anam Electronics vs. AptaBio Therapeutics | Anam Electronics vs. Daewoo SBI SPAC | Anam Electronics vs. Dream Security co | Anam Electronics vs. Microfriend |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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