Correlation Between ANTA Sports and Capital Clean
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Capital Clean 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 Capital Clean 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 Capital Clean Energy, you can compare the effects of market volatilities on ANTA Sports and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Capital Clean.
Diversification Opportunities for ANTA Sports and Capital Clean
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and Capital is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of ANTA Sports i.e., ANTA Sports and Capital Clean go up and down completely randomly.
Pair Corralation between ANTA Sports and Capital Clean
Assuming the 90 days horizon ANTA Sports Products is expected to generate 1.96 times more return on investment than Capital Clean. However, ANTA Sports is 1.96 times more volatile than Capital Clean Energy. It trades about 0.01 of its potential returns per unit of risk. Capital Clean Energy is currently generating about -0.04 per unit of risk. If you would invest 26,669 in ANTA Sports Products on September 13, 2024 and sell it today you would lose (89.00) from holding ANTA Sports Products or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ANTA Sports Products vs. Capital Clean Energy
Performance |
| Timeline |
| ANTA Sports Products |
| Capital Clean Energy |
ANTA Sports and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Capital Clean
The main advantage of trading using opposite ANTA Sports and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| ANTA Sports vs. Oriental Land Co | ANTA Sports vs. Oriental Land Co | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Carnival Plc ADS |
| Capital Clean vs. Oceanpal | Capital Clean vs. Safe Bulkers | Capital Clean vs. Safe Bulkers | Capital Clean vs. Safe Bulkers |
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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