Correlation Between ANJI Technology and Taiwan Takisawa
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Taiwan Takisawa 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 Taiwan Takisawa 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 Taiwan Takisawa Technology, you can compare the effects of market volatilities on ANJI Technology and Taiwan Takisawa 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 Taiwan Takisawa. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Taiwan Takisawa.
Diversification Opportunities for ANJI Technology and Taiwan Takisawa
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANJI and Taiwan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Taiwan Takisawa Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Takisawa 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 Taiwan Takisawa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Takisawa Tech has no effect on the direction of ANJI Technology i.e., ANJI Technology and Taiwan Takisawa go up and down completely randomly.
Pair Corralation between ANJI Technology and Taiwan Takisawa
Assuming the 90 days trading horizon ANJI Technology Co is expected to generate 1.27 times more return on investment than Taiwan Takisawa. However, ANJI Technology is 1.27 times more volatile than Taiwan Takisawa Technology. It trades about 0.41 of its potential returns per unit of risk. Taiwan Takisawa Technology is currently generating about -0.27 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANJI Technology Co vs. Taiwan Takisawa Technology
Performance |
| Timeline |
| ANJI Technology |
| Taiwan Takisawa Tech |
ANJI Technology and Taiwan Takisawa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Taiwan Takisawa
The main advantage of trading using opposite ANJI Technology and Taiwan Takisawa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Taiwan Takisawa 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 Taiwan Takisawa will offset losses from the drop in Taiwan Takisawa'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 |
| Taiwan Takisawa vs. Chinese Maritime Transport | Taiwan Takisawa vs. Sports Gear Co | Taiwan Takisawa vs. Hua Nan Financial | Taiwan Takisawa vs. Mega Financial Holding |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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