Correlation Between ANTA SPORTS and POSBO UNSPADRS/20YC1
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and POSBO UNSPADRS/20YC1 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 POSBO UNSPADRS/20YC1 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 POSBO UNSPADRS20YC1, you can compare the effects of market volatilities on ANTA SPORTS and POSBO UNSPADRS/20YC1 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 POSBO UNSPADRS/20YC1. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and POSBO UNSPADRS/20YC1.
Diversification Opportunities for ANTA SPORTS and POSBO UNSPADRS/20YC1
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and POSBO is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and POSBO UNSPADRS20YC1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSBO UNSPADRS/20YC1 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 POSBO UNSPADRS/20YC1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSBO UNSPADRS/20YC1 has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and POSBO UNSPADRS/20YC1 go up and down completely randomly.
Pair Corralation between ANTA SPORTS and POSBO UNSPADRS/20YC1
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.51 times more return on investment than POSBO UNSPADRS/20YC1. However, ANTA SPORTS is 1.51 times more volatile than POSBO UNSPADRS20YC1. It trades about 0.24 of its potential returns per unit of risk. POSBO UNSPADRS20YC1 is currently generating about -0.03 per unit of risk. If you would invest 933.00 in ANTA SPORTS PRODUCT on November 5, 2024 and sell it today you would earn a total of 92.00 from holding ANTA SPORTS PRODUCT or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. POSBO UNSPADRS20YC1
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| POSBO UNSPADRS/20YC1 |
ANTA SPORTS and POSBO UNSPADRS/20YC1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and POSBO UNSPADRS/20YC1
The main advantage of trading using opposite ANTA SPORTS and POSBO UNSPADRS/20YC1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, POSBO UNSPADRS/20YC1 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 POSBO UNSPADRS/20YC1 will offset losses from the drop in POSBO UNSPADRS/20YC1's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
| POSBO UNSPADRS/20YC1 vs. Zoom Video Communications | POSBO UNSPADRS/20YC1 vs. ecotel communication ag | POSBO UNSPADRS/20YC1 vs. Computershare Limited | POSBO UNSPADRS/20YC1 vs. Comba Telecom Systems |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |