Correlation Between ANTA Sports and Kenvue
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Kenvue 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 Kenvue 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 Kenvue Inc, you can compare the effects of market volatilities on ANTA Sports and Kenvue 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 Kenvue. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Kenvue.
Diversification Opportunities for ANTA Sports and Kenvue
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and Kenvue is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Kenvue Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenvue 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 Kenvue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenvue Inc has no effect on the direction of ANTA Sports i.e., ANTA Sports and Kenvue go up and down completely randomly.
Pair Corralation between ANTA Sports and Kenvue
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Kenvue. In addition to that, ANTA Sports is 1.93 times more volatile than Kenvue Inc. It trades about -0.12 of its total potential returns per unit of risk. Kenvue Inc is currently generating about 0.23 per unit of volatility. If you would invest 2,256 in Kenvue Inc on August 24, 2024 and sell it today you would earn a total of 161.50 from holding Kenvue Inc or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Kenvue Inc
Performance |
| Timeline |
| ANTA Sports Products |
| Kenvue Inc |
ANTA Sports and Kenvue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Kenvue
The main advantage of trading using opposite ANTA Sports and Kenvue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Kenvue 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 Kenvue will offset losses from the drop in Kenvue'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 |
| Kenvue vs. Eshallgo Class A | Kenvue vs. Amtech Systems | Kenvue vs. Gold Fields Ltd | Kenvue vs. Aegean Airlines SA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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