Correlation Between ANTA Sports and Bluerock Homes
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Bluerock Homes 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 Bluerock Homes 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 Bluerock Homes Trust, you can compare the effects of market volatilities on ANTA Sports and Bluerock Homes 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 Bluerock Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Bluerock Homes.
Diversification Opportunities for ANTA Sports and Bluerock Homes
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANTA and Bluerock is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Bluerock Homes Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluerock Homes Trust 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 Bluerock Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluerock Homes Trust has no effect on the direction of ANTA Sports i.e., ANTA Sports and Bluerock Homes go up and down completely randomly.
Pair Corralation between ANTA Sports and Bluerock Homes
Assuming the 90 days horizon ANTA Sports Products is expected to generate 1.51 times more return on investment than Bluerock Homes. However, ANTA Sports is 1.51 times more volatile than Bluerock Homes Trust. It trades about 0.0 of its potential returns per unit of risk. Bluerock Homes Trust is currently generating about -0.06 per unit of risk. If you would invest 26,818 in ANTA Sports Products on September 1, 2024 and sell it today you would lose (1,718) from holding ANTA Sports Products or give up 6.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Bluerock Homes Trust
Performance |
| Timeline |
| ANTA Sports Products |
| Bluerock Homes Trust |
ANTA Sports and Bluerock Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Bluerock Homes
The main advantage of trading using opposite ANTA Sports and Bluerock Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Bluerock Homes 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 Bluerock Homes will offset losses from the drop in Bluerock Homes' long position.| ANTA Sports vs. TWC Enterprises Limited | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Brownies Marine Group | ANTA Sports vs. Golden Heaven Group |
| Bluerock Homes vs. Re Max Holding | Bluerock Homes vs. Marcus Millichap | Bluerock Homes vs. Frp Holdings Ord | Bluerock Homes vs. Maui Land Pineapple |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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