Correlation Between ANTA Sports and Sonos
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Sonos 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 Sonos 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 Sonos Inc, you can compare the effects of market volatilities on ANTA Sports and Sonos 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 Sonos. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Sonos.
Diversification Opportunities for ANTA Sports and Sonos
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and Sonos is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Sonos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonos 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 Sonos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonos Inc has no effect on the direction of ANTA Sports i.e., ANTA Sports and Sonos go up and down completely randomly.
Pair Corralation between ANTA Sports and Sonos
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Sonos. In addition to that, ANTA Sports is 1.08 times more volatile than Sonos Inc. It trades about -0.06 of its total potential returns per unit of risk. Sonos Inc is currently generating about 0.04 per unit of volatility. If you would invest 1,434 in Sonos Inc on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Sonos Inc or generate 1.53% 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. Sonos Inc
Performance |
| Timeline |
| ANTA Sports Products |
| Sonos Inc |
ANTA Sports and Sonos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Sonos
The main advantage of trading using opposite ANTA Sports and Sonos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Sonos 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 Sonos will offset losses from the drop in Sonos' 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 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |