Correlation Between Tainergy Tech and ANJI Technology

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Can any of the company-specific risk be diversified away by investing in both Tainergy Tech 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 Tainergy Tech and ANJI Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tainergy Tech Co and ANJI Technology Co, you can compare the effects of market volatilities on Tainergy Tech 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 Tainergy Tech with a short position of ANJI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tainergy Tech and ANJI Technology.

Diversification Opportunities for Tainergy Tech and ANJI Technology

TainergyANJIDiversified AwayTainergyANJIDiversified Away100%
0.89
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Tainergy and ANJI is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tainergy Tech Co and ANJI Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANJI Technology and Tainergy Tech 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 Tainergy Tech Co 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 Tainergy Tech i.e., Tainergy Tech and ANJI Technology go up and down completely randomly.

Pair Corralation between Tainergy Tech and ANJI Technology

Assuming the 90 days trading horizon Tainergy Tech Co is expected to under-perform the ANJI Technology. But the stock apears to be less risky and, when comparing its historical volatility, Tainergy Tech Co is 1.02 times less risky than ANJI Technology. The stock trades about -0.24 of its potential returns per unit of risk. The ANJI Technology Co is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  3,465  in ANJI Technology Co on September 15, 2024 and sell it today you would lose (565.00) from holding ANJI Technology Co or give up 16.31% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Tainergy Tech Co  vs.  ANJI Technology Co

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -20-15-10-50510
JavaScript chart by amCharts 3.21.154934 6477
       Timeline  
Tainergy Tech 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Tainergy Tech Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec141516171819
ANJI Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ANJI Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec2930313233343536

Tainergy Tech and ANJI Technology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.64-2.73-1.81-0.90.00.751.512.263.02 0.0550.0600.0650.0700.0750.0800.0850.090
JavaScript chart by amCharts 3.21.154934 6477
       Returns  

Pair Trading with Tainergy Tech and ANJI Technology

The main advantage of trading using opposite Tainergy Tech and ANJI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tainergy Tech 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.
The idea behind Tainergy Tech Co and ANJI Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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