Correlation Between HannStar Board and ANJI Technology
Can any of the company-specific risk be diversified away by investing in both HannStar Board 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 HannStar Board and ANJI Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HannStar Board Corp and ANJI Technology Co, you can compare the effects of market volatilities on HannStar Board 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 HannStar Board with a short position of ANJI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HannStar Board and ANJI Technology.
Diversification Opportunities for HannStar Board and ANJI Technology
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HannStar and ANJI is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding HannStar Board 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 HannStar Board 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 HannStar Board 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 HannStar Board i.e., HannStar Board and ANJI Technology go up and down completely randomly.
Pair Corralation between HannStar Board and ANJI Technology
Assuming the 90 days trading horizon HannStar Board is expected to generate 12.82 times less return on investment than ANJI Technology. But when comparing it to its historical volatility, HannStar Board Corp is 2.36 times less risky than ANJI Technology. It trades about 0.09 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HannStar Board Corp vs. ANJI Technology Co
Performance |
| Timeline |
| HannStar Board Corp |
| ANJI Technology |
HannStar Board and ANJI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HannStar Board and ANJI Technology
The main advantage of trading using opposite HannStar Board and ANJI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HannStar Board 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.| HannStar Board vs. Tripod Technology Corp | HannStar Board vs. Hannstar Display Corp | HannStar Board vs. Compeq Manufacturing Co | HannStar Board vs. Unimicron Technology 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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