Correlation Between Yageo Corp and ANJI Technology
Can any of the company-specific risk be diversified away by investing in both Yageo Corp and ANJI Technology 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 Yageo Corp and ANJI Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yageo Corp and ANJI Technology Co, you can compare the effects of market volatilities on Yageo Corp and ANJI Technology 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 Yageo Corp with a short position of ANJI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yageo Corp and ANJI Technology.
Diversification Opportunities for Yageo Corp and ANJI Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yageo and ANJI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Yageo Corp and ANJI Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANJI Technology and Yageo Corp 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 Yageo Corp are associated (or correlated) with ANJI Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANJI Technology has no effect on the direction of Yageo Corp i.e., Yageo Corp and ANJI Technology go up and down completely randomly.
Pair Corralation between Yageo Corp and ANJI Technology
Assuming the 90 days trading horizon Yageo Corp is expected to generate 3.39 times less return on investment than ANJI Technology. But when comparing it to its historical volatility, Yageo Corp is 2.7 times less risky than ANJI Technology. It trades about 0.21 of its potential returns per unit of risk. ANJI Technology Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,060 in ANJI Technology Co on October 9, 2024 and sell it today you would earn a total of 680.00 from holding ANJI Technology Co or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yageo Corp vs. ANJI Technology Co
Performance |
| Timeline |
| Yageo Corp |
| ANJI Technology |
Yageo Corp and ANJI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yageo Corp and ANJI Technology
The main advantage of trading using opposite Yageo Corp and ANJI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yageo Corp position performs unexpectedly, ANJI Technology 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 ANJI Technology will offset losses from the drop in ANJI Technology's long position.| Yageo Corp vs. Silicon Power Computer | Yageo Corp vs. Jinan Acetate Chemical | Yageo Corp vs. Tong Hwa Synthetic Fiber | Yageo Corp vs. Johnson Chemical Pharmaceutical |
| ANJI Technology vs. Holy Stone Enterprise | ANJI Technology vs. Walsin Technology Corp | ANJI Technology vs. Yageo Corp | ANJI Technology vs. HannStar Board Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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