Correlation Between ANJI Technology and Sun Max
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Sun Max 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 Sun Max 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 Sun Max Tech, you can compare the effects of market volatilities on ANJI Technology and Sun Max 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 Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Sun Max.
Diversification Opportunities for ANJI Technology and Sun Max
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANJI and Sun is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Sun Max Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Max 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 Sun Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Max Tech has no effect on the direction of ANJI Technology i.e., ANJI Technology and Sun Max go up and down completely randomly.
Pair Corralation between ANJI Technology and Sun Max
Assuming the 90 days trading horizon ANJI Technology Co is expected to generate 2.77 times more return on investment than Sun Max. However, ANJI Technology is 2.77 times more volatile than Sun Max Tech. It trades about 0.45 of its potential returns per unit of risk. Sun Max Tech is currently generating about -0.18 per unit of risk. If you would invest 2,830 in ANJI Technology Co on October 28, 2024 and sell it today you would earn a total of 1,140 from holding ANJI Technology Co or generate 40.28% 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. Sun Max Tech
Performance |
| Timeline |
| ANJI Technology |
| Sun Max Tech |
ANJI Technology and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Sun Max
The main advantage of trading using opposite ANJI Technology and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Sun Max 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 Sun Max will offset losses from the drop in Sun Max's long position.| ANJI Technology vs. Unimicron Technology Corp | ANJI Technology vs. Kinsus Interconnect Technology | ANJI Technology vs. Novatek Microelectronics Corp | ANJI Technology vs. Delta Electronics |
| Sun Max vs. ASRock Inc | Sun Max vs. Ko Ja Cayman | Sun Max vs. Chenbro Micom Co | Sun Max vs. Leadtek Research |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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