Correlation Between ANTA Sports and Healthy Choice
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Healthy Choice 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 Healthy Choice 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 Healthy Choice Wellness, you can compare the effects of market volatilities on ANTA Sports and Healthy Choice 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 Healthy Choice. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Healthy Choice.
Diversification Opportunities for ANTA Sports and Healthy Choice
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Healthy is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Healthy Choice Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthy Choice Wellness 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 Healthy Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthy Choice Wellness has no effect on the direction of ANTA Sports i.e., ANTA Sports and Healthy Choice go up and down completely randomly.
Pair Corralation between ANTA Sports and Healthy Choice
Assuming the 90 days horizon ANTA Sports Products is expected to generate 0.46 times more return on investment than Healthy Choice. However, ANTA Sports Products is 2.16 times less risky than Healthy Choice. It trades about 0.05 of its potential returns per unit of risk. Healthy Choice Wellness is currently generating about -0.22 per unit of risk. If you would invest 26,290 in ANTA Sports Products on September 14, 2024 and sell it today you would earn a total of 536.00 from holding ANTA Sports Products or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Healthy Choice Wellness
Performance |
| Timeline |
| ANTA Sports Products |
| Healthy Choice Wellness |
ANTA Sports and Healthy Choice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Healthy Choice
The main advantage of trading using opposite ANTA Sports and Healthy Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Healthy Choice 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 Healthy Choice will offset losses from the drop in Healthy Choice's 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 |
| Healthy Choice vs. Costco Wholesale Corp | Healthy Choice vs. BJs Wholesale Club | Healthy Choice vs. Dollar Tree | Healthy Choice vs. Dollar General |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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