Correlation Between GREENX METALS and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and ANTA SPORTS.
Diversification Opportunities for GREENX METALS and ANTA SPORTS
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GREENX and ANTA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD 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 GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and ANTA SPORTS go up and down completely randomly.
Pair Corralation between GREENX METALS and ANTA SPORTS
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 1.77 times more return on investment than ANTA SPORTS. However, GREENX METALS is 1.77 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.02 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 37.00 in GREENX METALS LTD on August 29, 2024 and sell it today you would earn a total of 0.00 from holding GREENX METALS LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
GREENX METALS LTD vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| GREENX METALS LTD |
| ANTA SPORTS PRODUCT |
GREENX METALS and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and ANTA SPORTS
The main advantage of trading using opposite GREENX METALS and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Talanx AG |
| ANTA SPORTS vs. SEALED AIR | ANTA SPORTS vs. SYSTEMAIR AB | ANTA SPORTS vs. HF SINCLAIR P | ANTA SPORTS vs. Enter Air SA |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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