Correlation Between ANJI Technology and Danen Technology
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Danen 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 ANJI Technology and Danen Technology 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 Danen Technology Corp, you can compare the effects of market volatilities on ANJI Technology and Danen 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 ANJI Technology with a short position of Danen Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Danen Technology.
Diversification Opportunities for ANJI Technology and Danen Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANJI and Danen is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Danen Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danen Technology Corp 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 Danen Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danen Technology Corp has no effect on the direction of ANJI Technology i.e., ANJI Technology and Danen Technology go up and down completely randomly.
Pair Corralation between ANJI Technology and Danen Technology
Assuming the 90 days trading horizon ANJI Technology is expected to generate 1.16 times less return on investment than Danen Technology. But when comparing it to its historical volatility, ANJI Technology Co is 1.27 times less risky than Danen Technology. It trades about 0.01 of its potential returns per unit of risk. Danen Technology Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,980 in Danen Technology Corp on November 28, 2024 and sell it today you would lose (55.00) from holding Danen Technology Corp or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANJI Technology Co vs. Danen Technology Corp
Performance |
| Timeline |
| ANJI Technology |
| Danen Technology Corp |
ANJI Technology and Danen Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Danen Technology
The main advantage of trading using opposite ANJI Technology and Danen Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Danen 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 Danen Technology will offset losses from the drop in Danen Technology's long position.| ANJI Technology vs. TSEC Corp | ANJI Technology vs. United Renewable Energy | ANJI Technology vs. Tainergy Tech Co | ANJI Technology vs. Motech Industries Co |
| Danen Technology vs. United Renewable Energy | Danen Technology vs. Motech Industries Co | Danen Technology vs. Tainergy Tech Co | Danen Technology vs. Gigasolar Materials |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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