Correlation Between ANTA Sports and Dogness International
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Dogness International 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 ANTA Sports and Dogness International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA Sports Products and Dogness International Corp, you can compare the effects of market volatilities on ANTA Sports and Dogness International 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 ANTA Sports with a short position of Dogness International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Dogness International.
Diversification Opportunities for ANTA Sports and Dogness International
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Dogness is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Dogness International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogness International and ANTA Sports 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 ANTA Sports Products are associated (or correlated) with Dogness International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogness International has no effect on the direction of ANTA Sports i.e., ANTA Sports and Dogness International go up and down completely randomly.
Pair Corralation between ANTA Sports and Dogness International
Assuming the 90 days horizon ANTA Sports is expected to generate 4.47 times less return on investment than Dogness International. But when comparing it to its historical volatility, ANTA Sports Products is 13.03 times less risky than Dogness International. It trades about 0.21 of its potential returns per unit of risk. Dogness International Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,219 in Dogness International Corp on November 9, 2024 and sell it today you would lose (666.00) from holding Dogness International Corp or give up 15.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Dogness International Corp
Performance |
| Timeline |
| ANTA Sports Products |
| Dogness International |
ANTA Sports and Dogness International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Dogness International
The main advantage of trading using opposite ANTA Sports and Dogness International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Dogness International 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 Dogness International will offset losses from the drop in Dogness International's long position.| ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Li Ning Company | ANTA Sports vs. Li Ning Co | ANTA Sports vs. Anhui Conch Cement |
| Dogness International vs. Escalade Incorporated | Dogness International vs. JAKKS Pacific | Dogness International vs. Clarus Corp | Dogness International vs. Six Flags Entertainment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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