Correlation Between ANJI Technology and S Tech

Can any of the company-specific risk be diversified away by investing in both ANJI Technology and S Tech 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 S Tech 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 S Tech Corp, you can compare the effects of market volatilities on ANJI Technology and S Tech 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 S Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANJI Technology and S Tech.

Diversification Opportunities for ANJI Technology and S Tech

-0.28

Correlation Coefficient

ANJI Technology  S Tech

Very good diversification

The 3 months correlation between ANJI and 1584 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and S Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Tech Corp 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 S Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Tech Corp has no effect on the direction of ANJI Technology i.e., ANJI Technology and S Tech go up and down completely randomly.

Pair Corralation between ANJI Technology and S Tech

Assuming the 90 days trading horizon ANJI Technology Co is expected to under-perform the S Tech. But the stock apears to be less risky and, when comparing its historical volatility, ANJI Technology Co is 1.05 times less risky than S Tech. The stock trades about 0.0 of its potential returns per unit of risk. The S Tech Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,270  in S Tech Corp on October 24, 2024 and sell it today you would earn a total of  420.00  from holding S Tech Corp or generate 18.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ANJI Technology Co  vs.  S Tech Corp

ANJI Technology

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANJI Technology Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, ANJI Technology showed solid returns over the last few months and may actually be approaching a breakup point.

S Tech Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days S Tech Corp 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 February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with ANJI Technology and S Tech

The main advantage of trading using opposite ANJI Technology and S Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANJI Technology position performs unexpectedly, S Tech 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 S Tech will offset losses from the drop in S Tech's long position.

The idea behind ANJI Technology Co and S Tech Corp 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.