Correlation Between ANTA Sports and PHINIA
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and PHINIA 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 PHINIA 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 PHINIA Inc, you can compare the effects of market volatilities on ANTA Sports and PHINIA 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 PHINIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and PHINIA.
Diversification Opportunities for ANTA Sports and PHINIA
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and PHINIA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and PHINIA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHINIA 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 PHINIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHINIA Inc has no effect on the direction of ANTA Sports i.e., ANTA Sports and PHINIA go up and down completely randomly.
Pair Corralation between ANTA Sports and PHINIA
Assuming the 90 days horizon ANTA Sports is expected to generate 2.48 times less return on investment than PHINIA. In addition to that, ANTA Sports is 1.33 times more volatile than PHINIA Inc. It trades about 0.04 of its total potential returns per unit of risk. PHINIA Inc is currently generating about 0.12 per unit of volatility. If you would invest 2,910 in PHINIA Inc on September 14, 2024 and sell it today you would earn a total of 2,422 from holding PHINIA Inc or generate 83.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. PHINIA Inc
Performance |
| Timeline |
| ANTA Sports Products |
| PHINIA Inc |
ANTA Sports and PHINIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and PHINIA
The main advantage of trading using opposite ANTA Sports and PHINIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, PHINIA 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 PHINIA will offset losses from the drop in PHINIA'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 |
| PHINIA vs. FitLife Brands, Common | PHINIA vs. Kulicke and Soffa | PHINIA vs. Amkor Technology | PHINIA vs. NH Foods Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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