Correlation Between Assura PLC and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Assura PLC 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 Assura PLC and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assura PLC and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Assura PLC 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 Assura PLC with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assura PLC and ANTA SPORTS.
Diversification Opportunities for Assura PLC and ANTA SPORTS
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Assura and ANTA is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Assura PLC 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 Assura PLC 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 Assura PLC 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 Assura PLC i.e., Assura PLC and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Assura PLC and ANTA SPORTS
Assuming the 90 days horizon Assura PLC is expected to generate 2.06 times less return on investment than ANTA SPORTS. But when comparing it to its historical volatility, Assura PLC is 2.21 times less risky than ANTA SPORTS. It trades about 0.09 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 992.00 in ANTA SPORTS PRODUCT on September 14, 2024 and sell it today you would earn a total of 42.00 from holding ANTA SPORTS PRODUCT or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assura PLC vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Assura PLC |
| ANTA SPORTS PRODUCT |
Assura PLC and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assura PLC and ANTA SPORTS
The main advantage of trading using opposite Assura PLC and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assura PLC 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.| Assura PLC vs. ANTA SPORTS PRODUCT | Assura PLC vs. Darden Restaurants | Assura PLC vs. CAREER EDUCATION | Assura PLC vs. DEVRY EDUCATION GRP |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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