Correlation Between ANTA SPORTS and WIMFARM SA
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and WIMFARM SA 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 WIMFARM SA 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 WIMFARM SA EO, you can compare the effects of market volatilities on ANTA SPORTS and WIMFARM SA 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 WIMFARM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and WIMFARM SA.
Diversification Opportunities for ANTA SPORTS and WIMFARM SA
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANTA and WIMFARM is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and WIMFARM SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIMFARM SA EO 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 WIMFARM SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIMFARM SA EO has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and WIMFARM SA go up and down completely randomly.
Pair Corralation between ANTA SPORTS and WIMFARM SA
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the WIMFARM SA. In addition to that, ANTA SPORTS is 1.29 times more volatile than WIMFARM SA EO. It trades about -0.25 of its total potential returns per unit of risk. WIMFARM SA EO is currently generating about -0.25 per unit of volatility. If you would invest 354.00 in WIMFARM SA EO on August 29, 2024 and sell it today you would lose (30.00) from holding WIMFARM SA EO or give up 8.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. WIMFARM SA EO
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| WIMFARM SA EO |
ANTA SPORTS and WIMFARM SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and WIMFARM SA
The main advantage of trading using opposite ANTA SPORTS and WIMFARM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, WIMFARM SA 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 WIMFARM SA will offset losses from the drop in WIMFARM SA's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
| WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. Origin Agritech | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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