Correlation Between ANTA Sports and Yamaha Corp
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Yamaha Corp 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 Yamaha Corp 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 Yamaha Corp DRC, you can compare the effects of market volatilities on ANTA Sports and Yamaha Corp 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 Yamaha Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Yamaha Corp.
Diversification Opportunities for ANTA Sports and Yamaha Corp
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANTA and Yamaha is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Yamaha Corp DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha Corp DRC 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 Yamaha Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha Corp DRC has no effect on the direction of ANTA Sports i.e., ANTA Sports and Yamaha Corp go up and down completely randomly.
Pair Corralation between ANTA Sports and Yamaha Corp
Assuming the 90 days horizon ANTA Sports Products is expected to generate 0.29 times more return on investment than Yamaha Corp. However, ANTA Sports Products is 3.47 times less risky than Yamaha Corp. It trades about 0.23 of its potential returns per unit of risk. Yamaha Corp DRC is currently generating about -0.05 per unit of risk. If you would invest 975.00 in ANTA Sports Products on October 20, 2024 and sell it today you would earn a total of 17.00 from holding ANTA Sports Products or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Yamaha Corp DRC
Performance |
| Timeline |
| ANTA Sports Products |
| Yamaha Corp DRC |
ANTA Sports and Yamaha Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Yamaha Corp
The main advantage of trading using opposite ANTA Sports and Yamaha Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Yamaha Corp 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 Yamaha Corp will offset losses from the drop in Yamaha Corp'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 |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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