Correlation Between ANJI Technology and Data International
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Data International 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 Data International 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 Data International Co, you can compare the effects of market volatilities on ANJI Technology and Data International 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 Data International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Data International.
Diversification Opportunities for ANJI Technology and Data International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ANJI and Data is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Data International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data International 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 Data International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data International has no effect on the direction of ANJI Technology i.e., ANJI Technology and Data International go up and down completely randomly.
Pair Corralation between ANJI Technology and Data International
Assuming the 90 days trading horizon ANJI Technology Co is expected to generate 0.75 times more return on investment than Data International. However, ANJI Technology Co is 1.33 times less risky than Data International. It trades about 0.05 of its potential returns per unit of risk. Data International Co is currently generating about -0.46 per unit of risk. If you would invest 2,960 in ANJI Technology Co on September 13, 2024 and sell it today you would earn a total of 55.00 from holding ANJI Technology Co or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANJI Technology Co vs. Data International Co
Performance |
| Timeline |
| ANJI Technology |
| Data International |
ANJI Technology and Data International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Data International
The main advantage of trading using opposite ANJI Technology and Data International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Data International 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 Data International will offset losses from the drop in Data International'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 |
| Data International vs. TWOWAY Communications | Data International vs. Sporton International | Data International vs. Chinese Gamer International | Data International vs. Ibase Gaming |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |