Correlation Between Postal Savings and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Postal Savings 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 Postal Savings and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Postal Savings 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 Postal Savings with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and ANTA SPORTS.
Diversification Opportunities for Postal Savings and ANTA SPORTS
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Postal and ANTA is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank 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 Postal Savings 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 Postal Savings Bank 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 Postal Savings i.e., Postal Savings and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Postal Savings and ANTA SPORTS
Assuming the 90 days horizon Postal Savings Bank is expected to generate 2.0 times more return on investment than ANTA SPORTS. However, Postal Savings is 2.0 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.06 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.05 per unit of risk. If you would invest 24.00 in Postal Savings Bank on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Postal Savings Bank or generate 120.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postal Savings Bank vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Postal Savings Bank |
| ANTA SPORTS PRODUCT |
Postal Savings and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and ANTA SPORTS
The main advantage of trading using opposite Postal Savings and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings 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.| Postal Savings vs. POSBO UNSPADRS20YC1 | Postal Savings vs. UTD OV BK LOC ADR1 | Postal Savings vs. Superior Plus Corp | Postal Savings vs. SIVERS SEMICONDUCTORS AB |
| ANTA SPORTS vs. Entravision Communications | ANTA SPORTS vs. Postal Savings Bank | ANTA SPORTS vs. HEMISPHERE EGY | ANTA SPORTS vs. Computershare Limited |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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