Correlation Between Sun Max and ANJI Technology
Can any of the company-specific risk be diversified away by investing in both Sun Max and ANJI 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 Sun Max and ANJI Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Max Tech and ANJI Technology Co, you can compare the effects of market volatilities on Sun Max and ANJI 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 Sun Max with a short position of ANJI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Max and ANJI Technology.
Diversification Opportunities for Sun Max and ANJI Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and ANJI is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sun Max Tech and ANJI Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANJI Technology and Sun Max 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 Sun Max Tech are associated (or correlated) with ANJI Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANJI Technology has no effect on the direction of Sun Max i.e., Sun Max and ANJI Technology go up and down completely randomly.
Pair Corralation between Sun Max and ANJI Technology
Assuming the 90 days trading horizon Sun Max is expected to generate 1.54 times less return on investment than ANJI Technology. But when comparing it to its historical volatility, Sun Max Tech is 1.13 times less risky than ANJI Technology. It trades about 0.01 of its potential returns per unit of risk. ANJI Technology Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,900 in ANJI Technology Co on October 28, 2024 and sell it today you would earn a total of 70.00 from holding ANJI Technology Co or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Max Tech vs. ANJI Technology Co
Performance |
| Timeline |
| Sun Max Tech |
| ANJI Technology |
Sun Max and ANJI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Max and ANJI Technology
The main advantage of trading using opposite Sun Max and ANJI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Max position performs unexpectedly, ANJI 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 ANJI Technology will offset losses from the drop in ANJI Technology's long position.| Sun Max vs. ASRock Inc | Sun Max vs. Ko Ja Cayman | Sun Max vs. Chenbro Micom Co | Sun Max vs. Leadtek Research |
| ANJI Technology vs. Unimicron Technology Corp | ANJI Technology vs. Kinsus Interconnect Technology | ANJI Technology vs. Novatek Microelectronics Corp | ANJI Technology vs. Delta Electronics |
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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