Correlation Between ANTA Sports and Capital Clean

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

ANTA Sports Products  vs.  Capital Clean Energy

 Performance 
       Timeline  
ANTA Sports Products 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, ANTA Sports showed solid returns over the last few months and may actually be approaching a breakup point.
Capital Clean Energy 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Capital Clean Energy are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Capital Clean may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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.
The idea behind ANTA Sports Products and Capital Clean Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope