Correlation Between Anpec Electronics and Advanced Analog
Can any of the company-specific risk be diversified away by investing in both Anpec Electronics and Advanced Analog 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 Anpec Electronics and Advanced Analog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anpec Electronics and Advanced Analog Technology, you can compare the effects of market volatilities on Anpec Electronics and Advanced Analog 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 Anpec Electronics with a short position of Advanced Analog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anpec Electronics and Advanced Analog.
Diversification Opportunities for Anpec Electronics and Advanced Analog
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anpec and Advanced is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Anpec Electronics and Advanced Analog Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Analog Tech and Anpec Electronics 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 Anpec Electronics are associated (or correlated) with Advanced Analog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Analog Tech has no effect on the direction of Anpec Electronics i.e., Anpec Electronics and Advanced Analog go up and down completely randomly.
Pair Corralation between Anpec Electronics and Advanced Analog
Assuming the 90 days trading horizon Anpec Electronics is expected to generate 1.75 times less return on investment than Advanced Analog. But when comparing it to its historical volatility, Anpec Electronics is 2.82 times less risky than Advanced Analog. It trades about 0.35 of its potential returns per unit of risk. Advanced Analog Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5,760 in Advanced Analog Technology on November 28, 2024 and sell it today you would earn a total of 550.00 from holding Advanced Analog Technology or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Anpec Electronics vs. Advanced Analog Technology
Performance |
| Timeline |
| Anpec Electronics |
| Advanced Analog Tech |
Anpec Electronics and Advanced Analog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anpec Electronics and Advanced Analog
The main advantage of trading using opposite Anpec Electronics and Advanced Analog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anpec Electronics position performs unexpectedly, Advanced Analog 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 Advanced Analog will offset losses from the drop in Advanced Analog's long position.| Anpec Electronics vs. Realtek Semiconductor Corp | Anpec Electronics vs. Novatek Microelectronics Corp | Anpec Electronics vs. Elan Microelectronics Corp | Anpec Electronics vs. Global Mixed Mode Technology |
| Advanced Analog vs. Tait Marketing Distribution | Advanced Analog vs. Shian Yih Electronic | Advanced Analog vs. C Media Electronics | Advanced Analog vs. Lelon Electronics Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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