Correlation Between ANTA SPORTS and Townsquare Media
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Townsquare Media 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 Townsquare Media 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 Townsquare Media, you can compare the effects of market volatilities on ANTA SPORTS and Townsquare Media 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 Townsquare Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Townsquare Media.
Diversification Opportunities for ANTA SPORTS and Townsquare Media
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANTA and Townsquare is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Townsquare Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Townsquare Media 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 Townsquare Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Townsquare Media has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Townsquare Media go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Townsquare Media
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 1.63 times less return on investment than Townsquare Media. In addition to that, ANTA SPORTS is 1.11 times more volatile than Townsquare Media. It trades about 0.03 of its total potential returns per unit of risk. Townsquare Media is currently generating about 0.05 per unit of volatility. If you would invest 594.00 in Townsquare Media on August 30, 2024 and sell it today you would earn a total of 341.00 from holding Townsquare Media or generate 57.41% 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 PRODUCT vs. Townsquare Media
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Townsquare Media |
ANTA SPORTS and Townsquare Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Townsquare Media
The main advantage of trading using opposite ANTA SPORTS and Townsquare Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Townsquare Media 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 Townsquare Media will offset losses from the drop in Townsquare Media's long position.| ANTA SPORTS vs. SEALED AIR | ANTA SPORTS vs. SYSTEMAIR AB | ANTA SPORTS vs. HF SINCLAIR P | ANTA SPORTS vs. Enter Air SA |
| Townsquare Media vs. Align Technology | Townsquare Media vs. Westinghouse Air Brake | Townsquare Media vs. Fair Isaac Corp | Townsquare Media vs. DELTA AIR LINES |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |