Correlation Between Anji Microelectronics and Tianjin Pengling
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By analyzing existing cross correlation between Anji Microelectronics Tech and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Anji Microelectronics and Tianjin Pengling 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 Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anji Microelectronics and Tianjin Pengling.
Diversification Opportunities for Anji Microelectronics and Tianjin Pengling
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anji and Tianjin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Anji Microelectronics Tech and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber 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 Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Anji Microelectronics i.e., Anji Microelectronics and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Anji Microelectronics and Tianjin Pengling
Assuming the 90 days trading horizon Anji Microelectronics Tech is expected to generate 1.26 times more return on investment than Tianjin Pengling. However, Anji Microelectronics is 1.26 times more volatile than Tianjin Pengling Rubber. It trades about 0.15 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.15 per unit of risk. If you would invest 10,500 in Anji Microelectronics Tech on September 8, 2024 and sell it today you would earn a total of 4,402 from holding Anji Microelectronics Tech or generate 41.92% 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. Tianjin Pengling Rubber
Performance |
Timeline |
Anji Microelectronics |
Tianjin Pengling Rubber |
Anji Microelectronics and Tianjin Pengling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anji Microelectronics and Tianjin Pengling
The main advantage of trading using opposite Anji Microelectronics and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anji Microelectronics position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.Anji Microelectronics vs. Tibet Huayu Mining | Anji Microelectronics vs. Uroica Mining Safety | Anji Microelectronics vs. Zoy Home Furnishing | Anji Microelectronics vs. Dalian Thermal Power |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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