Correlation Between ANTA Sports and Life Time
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Life Time 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 Life Time 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 Life Time Group, you can compare the effects of market volatilities on ANTA Sports and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Life Time.
Diversification Opportunities for ANTA Sports and Life Time
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANTA and Life is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of ANTA Sports i.e., ANTA Sports and Life Time go up and down completely randomly.
Pair Corralation between ANTA Sports and Life Time
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Life Time. In addition to that, ANTA Sports is 1.52 times more volatile than Life Time Group. It trades about 0.0 of its total potential returns per unit of risk. Life Time Group is currently generating about 0.14 per unit of volatility. If you would invest 1,727 in Life Time Group on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Life Time Group or generate 40.53% 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. Life Time Group
Performance |
| Timeline |
| ANTA Sports Products |
| Life Time Group |
ANTA Sports and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Life Time
The main advantage of trading using opposite ANTA Sports and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time'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 |
| Life Time vs. The Wendys Co | Life Time vs. Shake Shack | Life Time vs. Papa Johns International | Life Time vs. Darden Restaurants |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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