Correlation Between Chinese Maritime and Antec
Can any of the company-specific risk be diversified away by investing in both Chinese Maritime and Antec 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 Chinese Maritime and Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Maritime Transport and Antec Inc, you can compare the effects of market volatilities on Chinese Maritime and Antec 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 Chinese Maritime with a short position of Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Maritime and Antec.
Diversification Opportunities for Chinese Maritime and Antec
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chinese and Antec is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Maritime Transport and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc and Chinese Maritime 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 Chinese Maritime Transport are associated (or correlated) with Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of Chinese Maritime i.e., Chinese Maritime and Antec go up and down completely randomly.
Pair Corralation between Chinese Maritime and Antec
Assuming the 90 days trading horizon Chinese Maritime is expected to generate 9.97 times less return on investment than Antec. But when comparing it to its historical volatility, Chinese Maritime Transport is 2.24 times less risky than Antec. It trades about 0.01 of its potential returns per unit of risk. Antec Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,633 in Antec Inc on October 25, 2024 and sell it today you would earn a total of 1,252 from holding Antec Inc or generate 76.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Chinese Maritime Transport vs. Antec Inc
Performance |
| Timeline |
| Chinese Maritime Tra |
| Antec Inc |
Chinese Maritime and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Maritime and Antec
The main advantage of trading using opposite Chinese Maritime and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Maritime position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| Chinese Maritime vs. U Ming Marine Transport | Chinese Maritime vs. Sincere Navigation Corp | Chinese Maritime vs. Taiwan Navigation Co | Chinese Maritime vs. Huaku Development Co |
| Antec vs. Camellia Metal Co | Antec vs. Jetwell Computer Co | Antec vs. WinMate Communication INC | Antec vs. Emerging Display Technologies |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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