Correlation Between ANJI Technology and Asia Electronic
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Asia Electronic 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 Asia Electronic 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 Asia Electronic Material, you can compare the effects of market volatilities on ANJI Technology and Asia Electronic 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 Asia Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Asia Electronic.
Diversification Opportunities for ANJI Technology and Asia Electronic
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANJI and Asia is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Asia Electronic Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Electronic Material 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 Asia Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Electronic Material has no effect on the direction of ANJI Technology i.e., ANJI Technology and Asia Electronic go up and down completely randomly.
Pair Corralation between ANJI Technology and Asia Electronic
Assuming the 90 days trading horizon ANJI Technology Co is expected to under-perform the Asia Electronic. In addition to that, ANJI Technology is 3.79 times more volatile than Asia Electronic Material. It trades about -0.09 of its total potential returns per unit of risk. Asia Electronic Material is currently generating about 0.02 per unit of volatility. If you would invest 1,985 in Asia Electronic Material on December 4, 2024 and sell it today you would earn a total of 5.00 from holding Asia Electronic Material or generate 0.25% 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. Asia Electronic Material
Performance |
| Timeline |
| ANJI Technology |
| Asia Electronic Material |
ANJI Technology and Asia Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Asia Electronic
The main advantage of trading using opposite ANJI Technology and Asia Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Asia Electronic 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 Asia Electronic will offset losses from the drop in Asia Electronic'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 |
| Asia Electronic vs. Singtex Industrial Co | Asia Electronic vs. Mobiletron Electronics Co | Asia Electronic vs. Tainet Communication System | Asia Electronic vs. Chialin Precision Industrial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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