Correlation Between ANJI Technology and Taisol Electronics
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Taisol Electronics 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 ANJI Technology and Taisol Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANJI Technology Co and Taisol Electronics Co, you can compare the effects of market volatilities on ANJI Technology and Taisol Electronics 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 ANJI Technology with a short position of Taisol Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Taisol Electronics.
Diversification Opportunities for ANJI Technology and Taisol Electronics
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANJI and Taisol is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Taisol Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taisol Electronics and ANJI 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 ANJI Technology Co are associated (or correlated) with Taisol Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taisol Electronics has no effect on the direction of ANJI Technology i.e., ANJI Technology and Taisol Electronics go up and down completely randomly.
Pair Corralation between ANJI Technology and Taisol Electronics
Assuming the 90 days trading horizon ANJI Technology Co is expected to under-perform the Taisol Electronics. But the stock apears to be less risky and, when comparing its historical volatility, ANJI Technology Co is 1.37 times less risky than Taisol Electronics. The stock trades about -0.01 of its potential returns per unit of risk. The Taisol Electronics Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 6,260 in Taisol Electronics Co on September 12, 2024 and sell it today you would earn a total of 520.00 from holding Taisol Electronics Co or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANJI Technology Co vs. Taisol Electronics Co
Performance |
| Timeline |
| ANJI Technology |
| Taisol Electronics |
ANJI Technology and Taisol Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Taisol Electronics
The main advantage of trading using opposite ANJI Technology and Taisol Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Taisol Electronics 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 Taisol Electronics will offset losses from the drop in Taisol Electronics' long position.| ANJI Technology vs. AU Optronics | ANJI Technology vs. Innolux Corp | ANJI Technology vs. Ruentex Development Co | ANJI Technology vs. WiseChip Semiconductor |
| Taisol Electronics vs. ANJI Technology Co | Taisol Electronics vs. Emerging Display Technologies | Taisol Electronics vs. U Tech Media Corp | Taisol Electronics vs. Ruentex Development 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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