Correlation Between Emerging Display and ANJI Technology
Can any of the company-specific risk be diversified away by investing in both Emerging Display 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 Emerging Display and ANJI Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Display Technologies and ANJI Technology Co, you can compare the effects of market volatilities on Emerging Display 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 Emerging Display with a short position of ANJI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Display and ANJI Technology.
Diversification Opportunities for Emerging Display and ANJI Technology
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emerging and ANJI is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Display Technologies and ANJI Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANJI Technology and Emerging Display 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 Emerging Display Technologies 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 Emerging Display i.e., Emerging Display and ANJI Technology go up and down completely randomly.
Pair Corralation between Emerging Display and ANJI Technology
Assuming the 90 days trading horizon Emerging Display Technologies is expected to generate 0.76 times more return on investment than ANJI Technology. However, Emerging Display Technologies is 1.31 times less risky than ANJI Technology. It trades about -0.03 of its potential returns per unit of risk. ANJI Technology Co is currently generating about -0.03 per unit of risk. If you would invest 3,405 in Emerging Display Technologies on September 12, 2024 and sell it today you would lose (695.00) from holding Emerging Display Technologies or give up 20.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerging Display Technologies vs. ANJI Technology Co
Performance |
| Timeline |
| Emerging Display Tec |
| ANJI Technology |
Emerging Display and ANJI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Display and ANJI Technology
The main advantage of trading using opposite Emerging Display and ANJI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Display 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.| Emerging Display vs. AU Optronics | Emerging Display vs. Innolux Corp | Emerging Display vs. Ruentex Development Co | Emerging Display vs. WiseChip Semiconductor |
| ANJI Technology vs. AU Optronics | ANJI Technology vs. Innolux Corp | ANJI Technology vs. Ruentex Development Co | ANJI Technology 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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