Correlation Between ANJI Technology and Information Technology
Can any of the company-specific risk be diversified away by investing in both ANJI Technology and Information Technology 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 Information Technology 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 Information Technology Total, you can compare the effects of market volatilities on ANJI Technology and Information Technology 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 Information Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and Information Technology.
Diversification Opportunities for ANJI Technology and Information Technology
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANJI and Information is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Information Technology Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information Technology 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 Information Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information Technology has no effect on the direction of ANJI Technology i.e., ANJI Technology and Information Technology go up and down completely randomly.
Pair Corralation between ANJI Technology and Information Technology
Assuming the 90 days trading horizon ANJI Technology Co is expected to under-perform the Information Technology. In addition to that, ANJI Technology is 1.03 times more volatile than Information Technology Total. It trades about -0.03 of its total potential returns per unit of risk. Information Technology Total is currently generating about 0.01 per unit of volatility. If you would invest 4,889 in Information Technology Total on September 12, 2024 and sell it today you would lose (119.00) from holding Information Technology Total or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANJI Technology Co vs. Information Technology Total
Performance |
| Timeline |
| ANJI Technology |
| Information Technology |
ANJI Technology and Information Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANJI Technology and Information Technology
The main advantage of trading using opposite ANJI Technology and Information Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, Information Technology 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 Information Technology will offset losses from the drop in Information Technology's long position.| ANJI Technology vs. AU Optronics | ANJI Technology vs. Innolux Corp | ANJI Technology vs. Ruentex Development Co | ANJI Technology vs. WiseChip Semiconductor |
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 Stocks Directory module to find actively traded stocks across global markets.
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