Correlation Between NewFlex Technology and Aniplus
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology and Aniplus 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 NewFlex Technology and Aniplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and Aniplus, you can compare the effects of market volatilities on NewFlex Technology and Aniplus 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 NewFlex Technology with a short position of Aniplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and Aniplus.
Diversification Opportunities for NewFlex Technology and Aniplus
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NewFlex and Aniplus is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology Co and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus and NewFlex Technology 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 NewFlex Technology Co are associated (or correlated) with Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of NewFlex Technology i.e., NewFlex Technology and Aniplus go up and down completely randomly.
Pair Corralation between NewFlex Technology and Aniplus
Assuming the 90 days trading horizon NewFlex Technology Co is expected to under-perform the Aniplus. In addition to that, NewFlex Technology is 1.28 times more volatile than Aniplus. It trades about -0.17 of its total potential returns per unit of risk. Aniplus is currently generating about -0.1 per unit of volatility. If you would invest 272,000 in Aniplus on September 5, 2024 and sell it today you would lose (12,500) from holding Aniplus or give up 4.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. Aniplus
Performance |
| Timeline |
| NewFlex Technology |
| Aniplus |
NewFlex Technology and Aniplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and Aniplus
The main advantage of trading using opposite NewFlex Technology and Aniplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology position performs unexpectedly, Aniplus 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 Aniplus will offset losses from the drop in Aniplus' long position.| NewFlex Technology vs. Dongsin Engineering Construction | NewFlex Technology vs. Doosan Fuel Cell | NewFlex Technology vs. Daishin Balance 1 | NewFlex Technology vs. Total Soft Bank |
| Aniplus vs. Hankook Steel Co | Aniplus vs. Finebesteel | Aniplus vs. Jeil Steel Mfg | Aniplus vs. NewFlex Technology 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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