Correlation Between Anpec Electronics and Sinopower Semiconductor
Can any of the company-specific risk be diversified away by investing in both Anpec Electronics and Sinopower Semiconductor 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 Sinopower Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anpec Electronics and Sinopower Semiconductor, you can compare the effects of market volatilities on Anpec Electronics and Sinopower Semiconductor 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 Sinopower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anpec Electronics and Sinopower Semiconductor.
Diversification Opportunities for Anpec Electronics and Sinopower Semiconductor
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anpec and Sinopower is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Anpec Electronics and Sinopower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopower Semiconductor 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 Sinopower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopower Semiconductor has no effect on the direction of Anpec Electronics i.e., Anpec Electronics and Sinopower Semiconductor go up and down completely randomly.
Pair Corralation between Anpec Electronics and Sinopower Semiconductor
Assuming the 90 days trading horizon Anpec Electronics is expected to generate 1.35 times more return on investment than Sinopower Semiconductor. However, Anpec Electronics is 1.35 times more volatile than Sinopower Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Sinopower Semiconductor is currently generating about 0.0 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anpec Electronics vs. Sinopower Semiconductor
Performance |
| Timeline |
| Anpec Electronics |
| Sinopower Semiconductor |
Anpec Electronics and Sinopower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anpec Electronics and Sinopower Semiconductor
The main advantage of trading using opposite Anpec Electronics and Sinopower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anpec Electronics position performs unexpectedly, Sinopower Semiconductor 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 Sinopower Semiconductor will offset losses from the drop in Sinopower Semiconductor'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 |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |