Correlation Between Anji Microelectronics and Guangdong Shenglu
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By analyzing existing cross correlation between Anji Microelectronics Tech and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Anji Microelectronics and Guangdong Shenglu 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 Microelectronics with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Microelectronics and Guangdong Shenglu.
Diversification Opportunities for Anji Microelectronics and Guangdong Shenglu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Guangdong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Anji Microelectronics Tech and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and Anji Microelectronics 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 Microelectronics Tech are associated (or correlated) with Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Anji Microelectronics i.e., Anji Microelectronics and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Anji Microelectronics and Guangdong Shenglu
Assuming the 90 days trading horizon Anji Microelectronics Tech is expected to generate 0.93 times more return on investment than Guangdong Shenglu. However, Anji Microelectronics Tech is 1.08 times less risky than Guangdong Shenglu. It trades about 0.03 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.19 per unit of risk. If you would invest 14,803 in Anji Microelectronics Tech on October 21, 2024 and sell it today you would earn a total of 121.00 from holding Anji Microelectronics Tech or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anji Microelectronics Tech vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Anji Microelectronics |
| Guangdong Shenglu |
Anji Microelectronics and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anji Microelectronics and Guangdong Shenglu
The main advantage of trading using opposite Anji Microelectronics and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Microelectronics position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Anji Microelectronics vs. Kweichow Moutai Co | Anji Microelectronics vs. NAURA Technology Group | Anji Microelectronics vs. Zhejiang Orient Gene | Anji Microelectronics vs. APT Medical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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