Correlation Between ANTA Sports and Funko
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Funko 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 Funko 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 Funko Inc, you can compare the effects of market volatilities on ANTA Sports and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Funko.
Diversification Opportunities for ANTA Sports and Funko
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANTA and Funko is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of ANTA Sports i.e., ANTA Sports and Funko go up and down completely randomly.
Pair Corralation between ANTA Sports and Funko
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Funko. But the pink sheet apears to be less risky and, when comparing its historical volatility, ANTA Sports Products is 1.44 times less risky than Funko. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Funko Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 951.00 in Funko Inc on August 30, 2024 and sell it today you would earn a total of 198.00 from holding Funko Inc or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Funko Inc
Performance |
| Timeline |
| ANTA Sports Products |
| Funko Inc |
ANTA Sports and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Funko
The main advantage of trading using opposite ANTA Sports and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.The idea behind ANTA Sports Products and Funko Inc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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