Correlation Between Andes Technology and An Shin
Can any of the company-specific risk be diversified away by investing in both Andes Technology and An Shin 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 Andes Technology and An Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andes Technology Corp and An Shin Food Services, you can compare the effects of market volatilities on Andes Technology and An Shin 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 Andes Technology with a short position of An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andes Technology and An Shin.
Diversification Opportunities for Andes Technology and An Shin
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Andes and 1259 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Andes Technology Corp and An Shin Food Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Shin Food and Andes 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 Andes Technology Corp are associated (or correlated) with An Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Shin Food has no effect on the direction of Andes Technology i.e., Andes Technology and An Shin go up and down completely randomly.
Pair Corralation between Andes Technology and An Shin
Assuming the 90 days trading horizon Andes Technology Corp is expected to generate 3.69 times more return on investment than An Shin. However, Andes Technology is 3.69 times more volatile than An Shin Food Services. It trades about 0.02 of its potential returns per unit of risk. An Shin Food Services is currently generating about -0.16 per unit of risk. If you would invest 39,250 in Andes Technology Corp on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Andes Technology Corp or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andes Technology Corp vs. An Shin Food Services
Performance |
| Timeline |
| Andes Technology Corp |
| An Shin Food |
Andes Technology and An Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andes Technology and An Shin
The main advantage of trading using opposite Andes Technology and An Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andes Technology position performs unexpectedly, An Shin 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 An Shin will offset losses from the drop in An Shin's long position.| Andes Technology vs. WIN Semiconductors | Andes Technology vs. GlobalWafers Co | Andes Technology vs. Novatek Microelectronics Corp | Andes Technology vs. Ruentex Development Co |
| An Shin vs. Gourmet Master Co | An Shin vs. Wowprime Corp | An Shin vs. Kura Sushi Asia | An Shin vs. TTFB Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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