Correlation Between Global Ship and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Global Ship 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 Global Ship and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Global Ship 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 Global Ship with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and ANTA SPORTS.
Diversification Opportunities for Global Ship and ANTA SPORTS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and ANTA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease 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 Global Ship 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 Global Ship Lease 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 Global Ship i.e., Global Ship and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Global Ship and ANTA SPORTS
Assuming the 90 days horizon Global Ship Lease is expected to generate 1.01 times more return on investment than ANTA SPORTS. However, Global Ship is 1.01 times more volatile than ANTA SPORTS PRODUCT. It trades about -0.07 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.14 per unit of risk. If you would invest 2,145 in Global Ship Lease on August 30, 2024 and sell it today you would lose (69.00) from holding Global Ship Lease or give up 3.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Global Ship Lease vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Global Ship Lease |
| ANTA SPORTS PRODUCT |
Global Ship and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and ANTA SPORTS
The main advantage of trading using opposite Global Ship and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship 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.| Global Ship vs. DEVRY EDUCATION GRP | Global Ship vs. DFS Furniture PLC | Global Ship vs. KB HOME | Global Ship vs. Taylor Morrison Home |
| ANTA SPORTS vs. InPlay Oil Corp | ANTA SPORTS vs. Harmony Gold Mining | ANTA SPORTS vs. Playa Hotels Resorts | ANTA SPORTS vs. Norwegian Air Shuttle |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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