Correlation Between Anhui Conch and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Anhui Conch 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 Anhui Conch and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anhui Conch Cement and ANTA Sports Products, you can compare the effects of market volatilities on Anhui Conch 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 Anhui Conch with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Conch and ANTA Sports.
Diversification Opportunities for Anhui Conch and ANTA Sports
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and ANTA is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Conch Cement and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products and Anhui Conch 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 Anhui Conch Cement 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 Products has no effect on the direction of Anhui Conch i.e., Anhui Conch and ANTA Sports go up and down completely randomly.
Pair Corralation between Anhui Conch and ANTA Sports
Assuming the 90 days horizon Anhui Conch is expected to generate 1.21 times less return on investment than ANTA Sports. But when comparing it to its historical volatility, Anhui Conch Cement is 1.63 times less risky than ANTA Sports. It trades about 0.01 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,153 in ANTA Sports Products on January 15, 2025 and sell it today you would lose (116.00) from holding ANTA Sports Products or give up 10.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 63.56% |
| Values | Daily Returns |
Anhui Conch Cement vs. ANTA Sports Products
Performance |
| Timeline |
| Anhui Conch Cement |
| ANTA Sports Products |
Anhui Conch and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Conch and ANTA Sports
The main advantage of trading using opposite Anhui Conch and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Conch 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' long position.| Anhui Conch vs. Buzzi Unicem SpA | Anhui Conch vs. Wienerberger Baustoffindustrie | Anhui Conch vs. Lafargeholcim Ltd ADR | Anhui Conch vs. Xinyi Glass Holdings |
| ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Li Ning Company | ANTA Sports vs. Li Ning Co | ANTA Sports vs. Anhui Conch Cement |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |