Correlation Between ANTA Sports and Playa Hotels
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Playa Hotels 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 Playa Hotels 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 Playa Hotels Resorts, you can compare the effects of market volatilities on ANTA Sports and Playa Hotels 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 Playa Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Playa Hotels.
Diversification Opportunities for ANTA Sports and Playa Hotels
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Playa is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Playa Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playa Hotels Resorts 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 Playa Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playa Hotels Resorts has no effect on the direction of ANTA Sports i.e., ANTA Sports and Playa Hotels go up and down completely randomly.
Pair Corralation between ANTA Sports and Playa Hotels
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Playa Hotels. In addition to that, ANTA Sports is 1.85 times more volatile than Playa Hotels Resorts. It trades about 0.0 of its total potential returns per unit of risk. Playa Hotels Resorts is currently generating about 0.07 per unit of volatility. If you would invest 846.00 in Playa Hotels Resorts on September 1, 2024 and sell it today you would earn a total of 133.00 from holding Playa Hotels Resorts or generate 15.72% 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. Playa Hotels Resorts
Performance |
| Timeline |
| ANTA Sports Products |
| Playa Hotels Resorts |
ANTA Sports and Playa Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Playa Hotels
The main advantage of trading using opposite ANTA Sports and Playa Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Playa Hotels 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 Playa Hotels will offset losses from the drop in Playa Hotels' 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 |
| Playa Hotels vs. Yatra Online | Playa Hotels vs. Mondee Holdings | Playa Hotels vs. MakeMyTrip Limited | Playa Hotels vs. Tuniu Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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