Correlation Between Strix Group and Anritsu
Can any of the company-specific risk be diversified away by investing in both Strix Group and Anritsu 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 Strix Group and Anritsu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and Anritsu, you can compare the effects of market volatilities on Strix Group and Anritsu 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 Strix Group with a short position of Anritsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and Anritsu.
Diversification Opportunities for Strix Group and Anritsu
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Strix and Anritsu is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and Anritsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anritsu and Strix Group 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 Strix Group Plc are associated (or correlated) with Anritsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anritsu has no effect on the direction of Strix Group i.e., Strix Group and Anritsu go up and down completely randomly.
Pair Corralation between Strix Group and Anritsu
Assuming the 90 days horizon Strix Group Plc is expected to generate 1.29 times more return on investment than Anritsu. However, Strix Group is 1.29 times more volatile than Anritsu. It trades about 0.12 of its potential returns per unit of risk. Anritsu is currently generating about -0.14 per unit of risk. If you would invest 76.00 in Strix Group Plc on March 7, 2024 and sell it today you would earn a total of 14.00 from holding Strix Group Plc or generate 18.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Strix Group Plc vs. Anritsu
Performance |
Timeline |
Strix Group Plc |
Anritsu |
Strix Group and Anritsu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Strix Group and Anritsu
The main advantage of trading using opposite Strix Group and Anritsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, Anritsu 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 Anritsu will offset losses from the drop in Anritsu's long position.Strix Group vs. CITIUS RESOURCES LS 005 | Strix Group vs. NMI Holdings | Strix Group vs. SIVERS SEMICONDUCTORS AB | Strix Group vs. Norsk Hydro ASA |
Anritsu vs. CITIUS RESOURCES LS 005 | Anritsu vs. NMI Holdings | Anritsu vs. SIVERS SEMICONDUCTORS AB | Anritsu vs. Norsk Hydro ASA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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