Correlation Between ANJI Technology and Tainergy Tech
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Tainergy Tech 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 Tainergy Tech 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 Tainergy Tech Co, you can compare the effects of market volatilities on ANJI Technology and Tainergy Tech 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 Tainergy Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Tainergy Tech.
Diversification Opportunities for ANJI Technology and Tainergy Tech
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ANJI and Tainergy is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Tainergy Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tainergy Tech 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 Tainergy Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tainergy Tech has no effect on the direction of ANJI Technology i.e., ANJI Technology and Tainergy Tech go up and down completely randomly.
Pair Corralation between ANJI Technology and Tainergy Tech
Assuming the 90 days trading horizon ANJI Technology Co is expected to under-perform the Tainergy Tech. In addition to that, ANJI Technology is 1.13 times more volatile than Tainergy Tech Co. It trades about -0.23 of its total potential returns per unit of risk. Tainergy Tech Co is currently generating about -0.17 per unit of volatility. If you would invest 1,530 in Tainergy Tech Co on September 2, 2024 and sell it today you would lose (145.00) from holding Tainergy Tech Co or give up 9.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANJI Technology Co vs. Tainergy Tech Co
Performance |
| Timeline |
| ANJI Technology |
| Tainergy Tech |
ANJI Technology and Tainergy Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Tainergy Tech
The main advantage of trading using opposite ANJI Technology and Tainergy Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Tainergy Tech 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 Tainergy Tech will offset losses from the drop in Tainergy Tech's long position.The idea behind ANJI Technology Co and Tainergy Tech Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Tainergy Tech vs. United Renewable Energy | Tainergy Tech vs. TSEC Corp | Tainergy Tech vs. ANJI Technology Co | Tainergy Tech vs. Danen Technology Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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