Correlation Between Microtips Technology and ANJI Technology
Can any of the company-specific risk be diversified away by investing in both Microtips 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 Microtips 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 Microtips Technology and ANJI Technology Co, you can compare the effects of market volatilities on Microtips 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 Microtips Technology with a short position of ANJI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microtips Technology and ANJI Technology.
Diversification Opportunities for Microtips Technology and ANJI Technology
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microtips and ANJI is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Microtips Technology and ANJI Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANJI Technology and Microtips 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 Microtips Technology 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 Microtips Technology i.e., Microtips Technology and ANJI Technology go up and down completely randomly.
Pair Corralation between Microtips Technology and ANJI Technology
Assuming the 90 days trading horizon Microtips Technology is expected to generate 1.0 times more return on investment than ANJI Technology. However, Microtips Technology is 1.0 times more volatile than ANJI Technology Co. It trades about 0.03 of its potential returns per unit of risk. ANJI Technology Co is currently generating about -0.02 per unit of risk. If you would invest 2,000 in Microtips Technology on December 12, 2024 and sell it today you would earn a total of 550.00 from holding Microtips Technology or generate 27.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microtips Technology vs. ANJI Technology Co
Performance |
| Timeline |
| Microtips Technology |
| ANJI Technology |
Microtips Technology and ANJI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microtips Technology and ANJI Technology
The main advantage of trading using opposite Microtips Technology and ANJI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microtips 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.| Microtips Technology vs. Shan Loong Transportation Co | ||
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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