Correlation Between ANTA Sports and Small Cap
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Small Cap 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 Small Cap 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 Small Cap Core, you can compare the effects of market volatilities on ANTA Sports and Small Cap 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 Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Small Cap.
Diversification Opportunities for ANTA Sports and Small Cap
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANTA and Small is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Small Cap Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Core 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 Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Core has no effect on the direction of ANTA Sports i.e., ANTA Sports and Small Cap go up and down completely randomly.
Pair Corralation between ANTA Sports and Small Cap
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Small Cap. In addition to that, ANTA Sports is 1.5 times more volatile than Small Cap Core. It trades about -0.24 of its total potential returns per unit of risk. Small Cap Core is currently generating about 0.19 per unit of volatility. If you would invest 1,393 in Small Cap Core on August 27, 2024 and sell it today you would earn a total of 93.00 from holding Small Cap Core or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Small Cap Core
Performance |
| Timeline |
| ANTA Sports Products |
| Small Cap Core |
ANTA Sports and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Small Cap
The main advantage of trading using opposite ANTA Sports and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Small Cap 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 Small Cap will offset losses from the drop in Small Cap'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 |
| Small Cap vs. Pro Blend Moderate Term | Small Cap vs. Hartford Moderate Allocation | Small Cap vs. Qs Moderate Growth | Small Cap vs. Dimensional Retirement Income |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |