Correlation Between ANTA SPORTS and ArcelorMittal
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and ArcelorMittal 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 ArcelorMittal 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 ArcelorMittal, you can compare the effects of market volatilities on ANTA SPORTS and ArcelorMittal 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 ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and ArcelorMittal.
Diversification Opportunities for ANTA SPORTS and ArcelorMittal
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANTA and ArcelorMittal is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and ArcelorMittal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal 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 ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and ArcelorMittal go up and down completely randomly.
Pair Corralation between ANTA SPORTS and ArcelorMittal
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.51 times more return on investment than ArcelorMittal. However, ANTA SPORTS is 1.51 times more volatile than ArcelorMittal. It trades about 0.03 of its potential returns per unit of risk. ArcelorMittal is currently generating about 0.01 per unit of risk. If you would invest 780.00 in ANTA SPORTS PRODUCT on August 29, 2024 and sell it today you would earn a total of 157.00 from holding ANTA SPORTS PRODUCT or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. ArcelorMittal
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| ArcelorMittal |
ANTA SPORTS and ArcelorMittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and ArcelorMittal
The main advantage of trading using opposite ANTA SPORTS and ArcelorMittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, ArcelorMittal 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 ArcelorMittal will offset losses from the drop in ArcelorMittal's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
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
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |