Correlation Between Walsin Technology and ANJI Technology
Can any of the company-specific risk be diversified away by investing in both Walsin Technology 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 Walsin Technology and ANJI Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walsin Technology Corp and ANJI Technology Co, you can compare the effects of market volatilities on Walsin Technology 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 Walsin Technology with a short position of ANJI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walsin Technology and ANJI Technology.
Diversification Opportunities for Walsin Technology and ANJI Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walsin and ANJI is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Walsin Technology 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 Walsin 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 Walsin Technology 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 Walsin Technology i.e., Walsin Technology and ANJI Technology go up and down completely randomly.
Pair Corralation between Walsin Technology and ANJI Technology
Assuming the 90 days trading horizon Walsin Technology is expected to generate 93.82 times less return on investment than ANJI Technology. But when comparing it to its historical volatility, Walsin Technology Corp is 2.28 times less risky than ANJI Technology. It trades about 0.01 of its potential returns per unit of risk. ANJI Technology Co is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 2,745 in ANJI Technology Co on October 24, 2024 and sell it today you would earn a total of 1,235 from holding ANJI Technology Co or generate 44.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walsin Technology Corp vs. ANJI Technology Co
Performance |
| Timeline |
| Walsin Technology Corp |
| ANJI Technology |
Walsin Technology and ANJI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walsin Technology and ANJI Technology
The main advantage of trading using opposite Walsin Technology and ANJI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walsin Technology 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.| Walsin Technology vs. Yageo Corp | Walsin Technology vs. Nanya Technology Corp | Walsin Technology vs. Holy Stone Enterprise | Walsin Technology vs. Novatek Microelectronics Corp |
| ANJI Technology vs. TSEC Corp | ANJI Technology vs. United Renewable Energy | ANJI Technology vs. Tainergy Tech Co | ANJI Technology vs. Motech Industries 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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