Correlation Between ANJI Technology and Ardentec

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

Diversification Opportunities for ANJI Technology and Ardentec

0.42

Correlation Coefficient

ANJI Technology  Ardentec

Very weak diversification

The 3 months correlation between ANJI and Ardentec is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ANJI Technology Co and Ardentec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardentec 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 Ardentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardentec has no effect on the direction of ANJI Technology i.e., ANJI Technology and Ardentec go up and down completely randomly.

Pair Corralation between ANJI Technology and Ardentec

Assuming the 90 days trading horizon ANJI Technology is expected to generate 1.19 times less return on investment than Ardentec. In addition to that, ANJI Technology is 1.09 times more volatile than Ardentec. It trades about 0.15 of its total potential returns per unit of risk. Ardentec is currently generating about 0.19 per unit of volatility. If you would invest  5,520  in Ardentec on December 22, 2024 and sell it today you would earn a total of  1,930  from holding Ardentec or generate 34.96% return on investment over 90 days.

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

ANJI Technology Co  vs.  Ardentec

ANJI Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ANJI Technology Co are ranked lower than 11 (%) 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.

Ardentec

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ardentec are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Ardentec showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANJI Technology and Ardentec

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

The idea behind ANJI Technology Co and Ardentec 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.