Correlation Between ANTA Sports and United Parks
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and United Parks 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 United Parks 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 United Parks Resorts, you can compare the effects of market volatilities on ANTA Sports and United Parks 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 United Parks. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and United Parks.
Diversification Opportunities for ANTA Sports and United Parks
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and United is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and United Parks Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parks 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 United Parks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parks Resorts has no effect on the direction of ANTA Sports i.e., ANTA Sports and United Parks go up and down completely randomly.
Pair Corralation between ANTA Sports and United Parks
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the United Parks. In addition to that, ANTA Sports is 1.15 times more volatile than United Parks Resorts. It trades about -0.11 of its total potential returns per unit of risk. United Parks Resorts is currently generating about 0.24 per unit of volatility. If you would invest 5,263 in United Parks Resorts on September 1, 2024 and sell it today you would earn a total of 601.00 from holding United Parks Resorts or generate 11.42% 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. United Parks Resorts
Performance |
| Timeline |
| ANTA Sports Products |
| United Parks Resorts |
ANTA Sports and United Parks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and United Parks
The main advantage of trading using opposite ANTA Sports and United Parks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, United Parks 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 United Parks will offset losses from the drop in United Parks' 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 |
| United Parks vs. Cracker Barrel Old | United Parks vs. Cementos Pacasmayo SAA | United Parks vs. BJs Restaurants | United Parks vs. Flexible Solutions International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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