Correlation Between PKSHA TECHNOLOGY and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and ANTA SPORTS.
Diversification Opportunities for PKSHA TECHNOLOGY and ANTA SPORTS
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PKSHA and ANTA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and ANTA SPORTS go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and ANTA SPORTS
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.62 times more return on investment than ANTA SPORTS. However, PKSHA TECHNOLOGY is 1.62 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.29 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 2,120 in PKSHA TECHNOLOGY INC on September 4, 2024 and sell it today you would earn a total of 480.00 from holding PKSHA TECHNOLOGY INC or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| ANTA SPORTS PRODUCT |
PKSHA TECHNOLOGY and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and ANTA SPORTS
The main advantage of trading using opposite PKSHA TECHNOLOGY and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY 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.| PKSHA TECHNOLOGY vs. Microsoft | PKSHA TECHNOLOGY vs. CrowdStrike Holdings | PKSHA TECHNOLOGY vs. VeriSign | PKSHA TECHNOLOGY vs. Palantir Technologies |
| ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. JD SPORTS FASH | ANTA SPORTS vs. Columbia Sportswear | ANTA SPORTS vs. The Hanover Insurance |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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