Correlation Between ECHO INVESTMENT and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both ECHO INVESTMENT 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 ECHO INVESTMENT and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECHO INVESTMENT ZY and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on ECHO INVESTMENT 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 ECHO INVESTMENT with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECHO INVESTMENT and ANTA SPORTS.
Diversification Opportunities for ECHO INVESTMENT and ANTA SPORTS
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ECHO and ANTA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ECHO INVESTMENT ZY 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 ECHO INVESTMENT 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 ECHO INVESTMENT ZY 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 ECHO INVESTMENT i.e., ECHO INVESTMENT and ANTA SPORTS go up and down completely randomly.
Pair Corralation between ECHO INVESTMENT and ANTA SPORTS
Assuming the 90 days horizon ECHO INVESTMENT ZY is expected to generate 0.76 times more return on investment than ANTA SPORTS. However, ECHO INVESTMENT ZY is 1.32 times less risky than ANTA SPORTS. It trades about 0.07 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.08 per unit of risk. If you would invest 98.00 in ECHO INVESTMENT ZY on September 4, 2024 and sell it today you would earn a total of 2.00 from holding ECHO INVESTMENT ZY or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ECHO INVESTMENT ZY vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| ECHO INVESTMENT ZY |
| ANTA SPORTS PRODUCT |
ECHO INVESTMENT and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECHO INVESTMENT and ANTA SPORTS
The main advantage of trading using opposite ECHO INVESTMENT and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECHO INVESTMENT 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.| ECHO INVESTMENT vs. GuocoLand Limited | ECHO INVESTMENT vs. Superior Plus Corp | ECHO INVESTMENT vs. NMI Holdings | ECHO INVESTMENT vs. Origin Agritech |
| ANTA SPORTS vs. ECHO INVESTMENT ZY | ANTA SPORTS vs. SLR Investment Corp | ANTA SPORTS vs. Wyndham Hotels Resorts | ANTA SPORTS vs. Pembina Pipeline Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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