Correlation Between ANJI Technology and Yuan High
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Yuan High 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 Yuan High 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 Yuan High Tech Development, you can compare the effects of market volatilities on ANJI Technology and Yuan High 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 Yuan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Yuan High.
Diversification Opportunities for ANJI Technology and Yuan High
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANJI and Yuan is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Yuan High Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan High 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 Yuan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan High Tech has no effect on the direction of ANJI Technology i.e., ANJI Technology and Yuan High go up and down completely randomly.
Pair Corralation between ANJI Technology and Yuan High
Assuming the 90 days trading horizon ANJI Technology Co is expected to generate 0.78 times more return on investment than Yuan High. However, ANJI Technology Co is 1.28 times less risky than Yuan High. It trades about 0.41 of its potential returns per unit of risk. Yuan High Tech Development is currently generating about -0.01 per unit of risk. If you would invest 2,780 in ANJI Technology Co on October 20, 2024 and sell it today you would earn a total of 1,140 from holding ANJI Technology Co or generate 41.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANJI Technology Co vs. Yuan High Tech Development
Performance |
| Timeline |
| ANJI Technology |
| Yuan High Tech |
ANJI Technology and Yuan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Yuan High
The main advantage of trading using opposite ANJI Technology and Yuan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Yuan High 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 Yuan High will offset losses from the drop in Yuan High'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 |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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