Correlation Between ANTA Sports and Ultra Clean
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Ultra Clean 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 Ultra Clean 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 Ultra Clean Holdings, you can compare the effects of market volatilities on ANTA Sports and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Ultra Clean.
Diversification Opportunities for ANTA Sports and Ultra Clean
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and Ultra is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of ANTA Sports i.e., ANTA Sports and Ultra Clean go up and down completely randomly.
Pair Corralation between ANTA Sports and Ultra Clean
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Ultra Clean. In addition to that, ANTA Sports is 1.14 times more volatile than Ultra Clean Holdings. It trades about -0.06 of its total potential returns per unit of risk. Ultra Clean Holdings is currently generating about 0.03 per unit of volatility. If you would invest 3,660 in Ultra Clean Holdings on September 12, 2024 and sell it today you would earn a total of 44.00 from holding Ultra Clean Holdings or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Ultra Clean Holdings
Performance |
| Timeline |
| ANTA Sports Products |
| Ultra Clean Holdings |
ANTA Sports and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Ultra Clean
The main advantage of trading using opposite ANTA Sports and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean'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 |
| Ultra Clean vs. Teradyne | Ultra Clean vs. Onto Innovation | Ultra Clean vs. Cohu Inc | Ultra Clean vs. Entegris |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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