Correlation Between Anderson Industrial and Tong Tai
Can any of the company-specific risk be diversified away by investing in both Anderson Industrial and Tong Tai 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 Anderson Industrial and Tong Tai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anderson Industrial Corp and Tong Tai Machine Tool, you can compare the effects of market volatilities on Anderson Industrial and Tong Tai 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 Anderson Industrial with a short position of Tong Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anderson Industrial and Tong Tai.
Diversification Opportunities for Anderson Industrial and Tong Tai
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anderson and Tong is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Anderson Industrial Corp and Tong Tai Machine Tool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tong Tai Machine and Anderson Industrial 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 Anderson Industrial Corp are associated (or correlated) with Tong Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tong Tai Machine has no effect on the direction of Anderson Industrial i.e., Anderson Industrial and Tong Tai go up and down completely randomly.
Pair Corralation between Anderson Industrial and Tong Tai
Assuming the 90 days trading horizon Anderson Industrial is expected to generate 1.34 times less return on investment than Tong Tai. But when comparing it to its historical volatility, Anderson Industrial Corp is 1.02 times less risky than Tong Tai. It trades about 0.06 of its potential returns per unit of risk. Tong Tai Machine Tool is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,395 in Tong Tai Machine Tool on September 3, 2024 and sell it today you would earn a total of 1,855 from holding Tong Tai Machine Tool or generate 132.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anderson Industrial Corp vs. Tong Tai Machine Tool
Performance |
| Timeline |
| Anderson Industrial Corp |
| Tong Tai Machine |
Anderson Industrial and Tong Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anderson Industrial and Tong Tai
The main advantage of trading using opposite Anderson Industrial and Tong Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anderson Industrial position performs unexpectedly, Tong Tai 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 Tong Tai will offset losses from the drop in Tong Tai's long position.| Anderson Industrial vs. Universal Microelectronics Co | Anderson Industrial vs. AVerMedia Technologies | Anderson Industrial vs. Symtek Automation Asia | Anderson Industrial vs. WiseChip Semiconductor |
| Tong Tai vs. Universal Microelectronics Co | Tong Tai vs. AVerMedia Technologies | Tong Tai vs. Symtek Automation Asia | Tong Tai vs. WiseChip Semiconductor |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |