Correlation Between Neinor Homes and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Neinor Homes 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 Neinor Homes and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neinor Homes SA and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Neinor Homes 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 Neinor Homes with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neinor Homes and ANTA SPORTS.
Diversification Opportunities for Neinor Homes and ANTA SPORTS
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Neinor and ANTA is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Neinor Homes SA 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 Neinor Homes 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 Neinor Homes SA 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 Neinor Homes i.e., Neinor Homes and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Neinor Homes and ANTA SPORTS
Assuming the 90 days trading horizon Neinor Homes SA is expected to generate 0.65 times more return on investment than ANTA SPORTS. However, Neinor Homes SA is 1.53 times less risky than ANTA SPORTS. It trades about 0.09 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.03 per unit of risk. If you would invest 779.00 in Neinor Homes SA on November 5, 2024 and sell it today you would earn a total of 895.00 from holding Neinor Homes SA or generate 114.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neinor Homes SA vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Neinor Homes SA |
| ANTA SPORTS PRODUCT |
Neinor Homes and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neinor Homes and ANTA SPORTS
The main advantage of trading using opposite Neinor Homes and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neinor Homes 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.| Neinor Homes vs. DALATA HOTEL | Neinor Homes vs. InterContinental Hotels Group | Neinor Homes vs. NH HOTEL GROUP | Neinor Homes vs. CSSC Offshore Marine |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |