Correlation Between ANJI Technology and Chi Sheng
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Chi Sheng 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 Chi Sheng 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 Chi Sheng Chemical, you can compare the effects of market volatilities on ANJI Technology and Chi Sheng 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 Chi Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Chi Sheng.
Diversification Opportunities for ANJI Technology and Chi Sheng
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANJI and Chi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Chi Sheng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chi Sheng Chemical 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 Chi Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chi Sheng Chemical has no effect on the direction of ANJI Technology i.e., ANJI Technology and Chi Sheng go up and down completely randomly.
Pair Corralation between ANJI Technology and Chi Sheng
Assuming the 90 days trading horizon ANJI Technology Co is expected to under-perform the Chi Sheng. In addition to that, ANJI Technology is 1.44 times more volatile than Chi Sheng Chemical. It trades about 0.0 of its total potential returns per unit of risk. Chi Sheng Chemical is currently generating about 0.01 per unit of volatility. If you would invest 2,760 in Chi Sheng Chemical on October 30, 2024 and sell it today you would earn a total of 65.00 from holding Chi Sheng Chemical or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANJI Technology Co vs. Chi Sheng Chemical
Performance |
| Timeline |
| ANJI Technology |
| Chi Sheng Chemical |
ANJI Technology and Chi Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Chi Sheng
The main advantage of trading using opposite ANJI Technology and Chi Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Chi Sheng 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 Chi Sheng will offset losses from the drop in Chi Sheng'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 |
| Chi Sheng vs. Feng Ching Metal | Chi Sheng vs. Asustek Computer | Chi Sheng vs. Loop Telecommunication International | Chi Sheng vs. Wonderful Hi Tech 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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