Correlation Between ANTA SPORTS and Sumitomo Rubber
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Sumitomo Rubber 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 Sumitomo Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA SPORTS PRODUCT and Sumitomo Rubber Industries, you can compare the effects of market volatilities on ANTA SPORTS and Sumitomo Rubber 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 Sumitomo Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Sumitomo Rubber.
Diversification Opportunities for ANTA SPORTS and Sumitomo Rubber
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and Sumitomo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Sumitomo Rubber Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Rubber Indu 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 PRODUCT are associated (or correlated) with Sumitomo Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Rubber Indu has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Sumitomo Rubber go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Sumitomo Rubber
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.42 times more return on investment than Sumitomo Rubber. However, ANTA SPORTS is 1.42 times more volatile than Sumitomo Rubber Industries. It trades about 0.18 of its potential returns per unit of risk. Sumitomo Rubber Industries is currently generating about 0.04 per unit of risk. If you would invest 950.00 in ANTA SPORTS PRODUCT on November 2, 2024 and sell it today you would earn a total of 70.00 from holding ANTA SPORTS PRODUCT or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Sumitomo Rubber Industries
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Sumitomo Rubber Indu |
ANTA SPORTS and Sumitomo Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Sumitomo Rubber
The main advantage of trading using opposite ANTA SPORTS and Sumitomo Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Sumitomo Rubber 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 Sumitomo Rubber will offset losses from the drop in Sumitomo Rubber's long position.| ANTA SPORTS vs. SALESFORCE INC CDR | ANTA SPORTS vs. Easy Software AG | ANTA SPORTS vs. FANDIFI TECHNOLOGY P | ANTA SPORTS vs. Check Point Software |
| Sumitomo Rubber vs. OFFICE DEPOT | Sumitomo Rubber vs. Firan Technology Group | Sumitomo Rubber vs. CENTURIA OFFICE REIT | Sumitomo Rubber vs. American Homes 4 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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