Correlation Between WICKES GROUP and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both WICKES GROUP and ANTA SPORTS 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 WICKES GROUP and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WICKES GROUP PLC and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on WICKES GROUP and ANTA SPORTS 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 WICKES GROUP with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of WICKES GROUP and ANTA SPORTS.
Diversification Opportunities for WICKES GROUP and ANTA SPORTS
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WICKES and ANTA is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding WICKES GROUP PLC and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and WICKES 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 WICKES GROUP PLC are associated (or correlated) with ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of WICKES GROUP i.e., WICKES GROUP and ANTA SPORTS go up and down completely randomly.
Pair Corralation between WICKES GROUP and ANTA SPORTS
Assuming the 90 days horizon WICKES GROUP is expected to generate 1.28 times less return on investment than ANTA SPORTS. But when comparing it to its historical volatility, WICKES GROUP PLC is 2.13 times less risky than ANTA SPORTS. It trades about 0.04 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 892.00 in ANTA SPORTS PRODUCT on September 3, 2024 and sell it today you would earn a total of 35.00 from holding ANTA SPORTS PRODUCT or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WICKES GROUP PLC vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| WICKES GROUP PLC |
| ANTA SPORTS PRODUCT |
WICKES GROUP and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WICKES GROUP and ANTA SPORTS
The main advantage of trading using opposite WICKES GROUP and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WICKES GROUP position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| WICKES GROUP vs. ScanSource | WICKES GROUP vs. FARO Technologies | WICKES GROUP vs. IMPERIAL TOBACCO | WICKES GROUP vs. PKSHA TECHNOLOGY INC |
| ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. JD SPORTS FASH | ANTA SPORTS vs. Columbia Sportswear | ANTA SPORTS vs. The Hanover Insurance |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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