Correlation Between Anpec Electronics and Excelliance MOS
Can any of the company-specific risk be diversified away by investing in both Anpec Electronics and Excelliance MOS 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 Excelliance MOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anpec Electronics and Excelliance MOS, you can compare the effects of market volatilities on Anpec Electronics and Excelliance MOS 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 Excelliance MOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anpec Electronics and Excelliance MOS.
Diversification Opportunities for Anpec Electronics and Excelliance MOS
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anpec and Excelliance is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Anpec Electronics and Excelliance MOS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelliance MOS 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 Excelliance MOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelliance MOS has no effect on the direction of Anpec Electronics i.e., Anpec Electronics and Excelliance MOS go up and down completely randomly.
Pair Corralation between Anpec Electronics and Excelliance MOS
Assuming the 90 days trading horizon Anpec Electronics is expected to generate 1.55 times more return on investment than Excelliance MOS. However, Anpec Electronics is 1.55 times more volatile than Excelliance MOS. It trades about 0.04 of its potential returns per unit of risk. Excelliance MOS is currently generating about -0.02 per unit of risk. If you would invest 11,936 in Anpec Electronics on August 30, 2024 and sell it today you would earn a total of 4,364 from holding Anpec Electronics or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anpec Electronics vs. Excelliance MOS
Performance |
| Timeline |
| Anpec Electronics |
| Excelliance MOS |
Anpec Electronics and Excelliance MOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anpec Electronics and Excelliance MOS
The main advantage of trading using opposite Anpec Electronics and Excelliance MOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anpec Electronics position performs unexpectedly, Excelliance MOS 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 Excelliance MOS will offset losses from the drop in Excelliance MOS'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 |
| Excelliance MOS vs. Sinopower Semiconductor | Excelliance MOS vs. Niko Semiconductor Co | Excelliance MOS vs. Advanced Power Electronics | Excelliance MOS vs. Anpec Electronics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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