Correlation Between InPlay Oil and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both InPlay Oil 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 InPlay Oil and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InPlay Oil Corp and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on InPlay Oil 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 InPlay Oil with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of InPlay Oil and ANTA SPORTS.
Diversification Opportunities for InPlay Oil and ANTA SPORTS
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between InPlay and ANTA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding InPlay Oil Corp 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 InPlay Oil 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 InPlay Oil Corp 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 InPlay Oil i.e., InPlay Oil and ANTA SPORTS go up and down completely randomly.
Pair Corralation between InPlay Oil and ANTA SPORTS
Assuming the 90 days trading horizon InPlay Oil Corp is expected to under-perform the ANTA SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, InPlay Oil Corp is 1.27 times less risky than ANTA SPORTS. The stock trades about -0.29 of its potential returns per unit of risk. The ANTA SPORTS PRODUCT is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 933.00 in ANTA SPORTS PRODUCT on November 5, 2024 and sell it today you would earn a total of 87.00 from holding ANTA SPORTS PRODUCT or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InPlay Oil Corp vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| InPlay Oil Corp |
| ANTA SPORTS PRODUCT |
InPlay Oil and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InPlay Oil and ANTA SPORTS
The main advantage of trading using opposite InPlay Oil and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InPlay Oil 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.| InPlay Oil vs. ScanSource | InPlay Oil vs. Universal Health Realty | InPlay Oil vs. ARDAGH METAL PACDL 0001 | InPlay Oil vs. CVS Health |
| ANTA SPORTS vs. KENEDIX OFFICE INV | ANTA SPORTS vs. DFS Furniture PLC | ANTA SPORTS vs. CLEAN ENERGY FUELS | ANTA SPORTS vs. The Home Depot |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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