Correlation Between ANTA SPORTS and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and MEDICAL FACILITIES 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 MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on ANTA SPORTS and MEDICAL FACILITIES 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 MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and MEDICAL FACILITIES.
Diversification Opportunities for ANTA SPORTS and MEDICAL FACILITIES
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANTA and MEDICAL is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between ANTA SPORTS and MEDICAL FACILITIES
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the MEDICAL FACILITIES. But the stock apears to be less risky and, when comparing its historical volatility, ANTA SPORTS PRODUCT is 1.23 times less risky than MEDICAL FACILITIES. The stock trades about -0.22 of its potential returns per unit of risk. The MEDICAL FACILITIES NEW is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 960.00 in MEDICAL FACILITIES NEW on August 27, 2024 and sell it today you would earn a total of 120.00 from holding MEDICAL FACILITIES NEW or generate 12.5% 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. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| MEDICAL FACILITIES NEW |
ANTA SPORTS and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and MEDICAL FACILITIES
The main advantage of trading using opposite ANTA SPORTS and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft |
| MEDICAL FACILITIES vs. Soken Chemical Engineering | MEDICAL FACILITIES vs. Mitsui Chemicals | MEDICAL FACILITIES vs. Eastman Chemical | MEDICAL FACILITIES vs. Sinopec Shanghai Petrochemical |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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