Correlation Between ANTA SPORTS and SHIP HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and SHIP HEALTHCARE 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 SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC, you can compare the effects of market volatilities on ANTA SPORTS and SHIP HEALTHCARE 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 SHIP HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and SHIP HEALTHCARE.
Diversification Opportunities for ANTA SPORTS and SHIP HEALTHCARE
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and SHIP is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and SHIP HEALTHCARE HLDGINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIP HEALTHCARE HLDGINC has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and SHIP HEALTHCARE go up and down completely randomly.
Pair Corralation between ANTA SPORTS and SHIP HEALTHCARE
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 2.97 times more return on investment than SHIP HEALTHCARE. However, ANTA SPORTS is 2.97 times more volatile than SHIP HEALTHCARE HLDGINC. It trades about 0.09 of its potential returns per unit of risk. SHIP HEALTHCARE HLDGINC is currently generating about 0.03 per unit of risk. If you would invest 743.00 in ANTA SPORTS PRODUCT on August 31, 2024 and sell it today you would earn a total of 167.00 from holding ANTA SPORTS PRODUCT or generate 22.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. SHIP HEALTHCARE HLDGINC
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| SHIP HEALTHCARE HLDGINC |
ANTA SPORTS and SHIP HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and SHIP HEALTHCARE
The main advantage of trading using opposite ANTA SPORTS and SHIP HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, SHIP HEALTHCARE 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 SHIP HEALTHCARE will offset losses from the drop in SHIP HEALTHCARE's long position.| ANTA SPORTS vs. SIVERS SEMICONDUCTORS AB | ANTA SPORTS vs. Darden Restaurants | ANTA SPORTS vs. Reliance Steel Aluminum | ANTA SPORTS vs. Q2M Managementberatung AG |
| SHIP HEALTHCARE vs. CVW CLEANTECH INC | SHIP HEALTHCARE vs. Science Applications International | SHIP HEALTHCARE vs. Ultra Clean Holdings | SHIP HEALTHCARE vs. Automatic Data Processing |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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