Correlation Between ANJI Technology and Onano Industrial
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Onano Industrial 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 Onano Industrial 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 Onano Industrial Corp, you can compare the effects of market volatilities on ANJI Technology and Onano Industrial 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 Onano Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Onano Industrial.
Diversification Opportunities for ANJI Technology and Onano Industrial
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANJI and Onano is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Onano Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onano Industrial Corp 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 Onano Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onano Industrial Corp has no effect on the direction of ANJI Technology i.e., ANJI Technology and Onano Industrial go up and down completely randomly.
Pair Corralation between ANJI Technology and Onano Industrial
Assuming the 90 days trading horizon ANJI Technology Co is expected to generate 1.96 times more return on investment than Onano Industrial. However, ANJI Technology is 1.96 times more volatile than Onano Industrial Corp. It trades about 0.32 of its potential returns per unit of risk. Onano Industrial Corp is currently generating about -0.31 per unit of risk. If you would invest 2,900 in ANJI Technology Co on October 14, 2024 and sell it today you would earn a total of 870.00 from holding ANJI Technology Co or generate 30.0% 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. Onano Industrial Corp
Performance |
| Timeline |
| ANJI Technology |
| Onano Industrial Corp |
ANJI Technology and Onano Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Onano Industrial
The main advantage of trading using opposite ANJI Technology and Onano Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Onano Industrial 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 Onano Industrial will offset losses from the drop in Onano Industrial'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 |
| Onano Industrial vs. Para Light Electronics | Onano Industrial vs. ANJI Technology Co | Onano Industrial vs. Chia Chang Co | Onano Industrial vs. Aiptek International |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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