Correlation Between Suntory Beverage and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Suntory Beverage 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 Suntory Beverage and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suntory Beverage Food and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Suntory Beverage 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 Suntory Beverage with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntory Beverage and ANTA SPORTS.
Diversification Opportunities for Suntory Beverage and ANTA SPORTS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Suntory and ANTA is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Suntory Beverage Food 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 Suntory Beverage 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 Suntory Beverage Food 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 Suntory Beverage i.e., Suntory Beverage and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Suntory Beverage and ANTA SPORTS
Assuming the 90 days horizon Suntory Beverage is expected to generate 5.47 times less return on investment than ANTA SPORTS. But when comparing it to its historical volatility, Suntory Beverage Food is 1.79 times less risky than ANTA SPORTS. It trades about 0.02 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 645.00 in ANTA SPORTS PRODUCT on September 20, 2024 and sell it today you would earn a total of 308.00 from holding ANTA SPORTS PRODUCT or generate 47.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suntory Beverage Food vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Suntory Beverage Food |
| ANTA SPORTS PRODUCT |
Suntory Beverage and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suntory Beverage and ANTA SPORTS
The main advantage of trading using opposite Suntory Beverage and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntory Beverage 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.| Suntory Beverage vs. Superior Plus Corp | Suntory Beverage vs. SIVERS SEMICONDUCTORS AB | Suntory Beverage vs. NorAm Drilling AS | Suntory Beverage vs. Norsk Hydro ASA |
| ANTA SPORTS vs. Suntory Beverage Food | ANTA SPORTS vs. Spirent Communications plc | ANTA SPORTS vs. Singapore Telecommunications Limited | ANTA SPORTS vs. Hemisphere Energy 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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