Correlation Between Anker Innovations and Sanan Optoelectronics
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By analyzing existing cross correlation between Anker Innovations Technology and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Anker Innovations and Sanan Optoelectronics 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 Anker Innovations with a short position of Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anker Innovations and Sanan Optoelectronics.
Diversification Opportunities for Anker Innovations and Sanan Optoelectronics
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anker and Sanan is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Anker Innovations Technology and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics and Anker Innovations 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 Anker Innovations Technology are associated (or correlated) with Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Anker Innovations i.e., Anker Innovations and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Anker Innovations and Sanan Optoelectronics
Assuming the 90 days trading horizon Anker Innovations Technology is expected to generate 1.12 times more return on investment than Sanan Optoelectronics. However, Anker Innovations is 1.12 times more volatile than Sanan Optoelectronics Co. It trades about 0.24 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about -0.18 per unit of risk. If you would invest 9,589 in Anker Innovations Technology on October 20, 2024 and sell it today you would earn a total of 1,126 from holding Anker Innovations Technology or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Anker Innovations Technology vs. Sanan Optoelectronics Co
Performance |
| Timeline |
| Anker Innovations |
| Sanan Optoelectronics |
Anker Innovations and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anker Innovations and Sanan Optoelectronics
The main advantage of trading using opposite Anker Innovations and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anker Innovations position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.| Anker Innovations vs. Agricultural Bank of | Anker Innovations vs. Industrial and Commercial | Anker Innovations vs. Bank of China | Anker Innovations vs. China Construction Bank |
| Sanan Optoelectronics vs. Harbin Air Conditioning | Sanan Optoelectronics vs. China Mobile Limited | Sanan Optoelectronics vs. MayAir Technology Co | Sanan Optoelectronics vs. Fibocom Wireless |
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 Stocks Directory module to find actively traded stocks across global markets.
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