Correlation Between ANTA Sports and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and NYSE Composite 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 ANTA Sports and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA Sports Products and NYSE Composite, you can compare the effects of market volatilities on ANTA Sports and NYSE Composite 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 ANTA Sports with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and NYSE Composite.
Diversification Opportunities for ANTA Sports and NYSE Composite
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANTA and NYSE is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and ANTA Sports 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 ANTA Sports Products are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of ANTA Sports i.e., ANTA Sports and NYSE Composite go up and down completely randomly.
Pair Corralation between ANTA Sports and NYSE Composite
Assuming the 90 days horizon ANTA Sports Products is expected to generate 3.11 times more return on investment than NYSE Composite. However, ANTA Sports is 3.11 times more volatile than NYSE Composite. It trades about 0.12 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.11 per unit of risk. If you would invest 1,043 in ANTA Sports Products on January 26, 2024 and sell it today you would earn a total of 55.00 from holding ANTA Sports Products or generate 5.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ANTA Sports Products vs. NYSE Composite
Performance |
Timeline |
ANTA Sports and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
ANTA Sports Products
Pair trading matchups for ANTA Sports
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with ANTA Sports and NYSE Composite
The main advantage of trading using opposite ANTA Sports and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.ANTA Sports vs. Hasbro Inc | ANTA Sports vs. JAKKS Pacific | ANTA Sports vs. Planet Fitness | ANTA Sports vs. Funko Inc |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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