Correlation Between ANTA SPORTS and BB Biotech
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and BB Biotech 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 BB Biotech 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 BB Biotech AG, you can compare the effects of market volatilities on ANTA SPORTS and BB Biotech 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 BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and BB Biotech.
Diversification Opportunities for ANTA SPORTS and BB Biotech
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and BBZA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech AG 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 BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and BB Biotech go up and down completely randomly.
Pair Corralation between ANTA SPORTS and BB Biotech
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the BB Biotech. In addition to that, ANTA SPORTS is 1.16 times more volatile than BB Biotech AG. It trades about -0.13 of its total potential returns per unit of risk. BB Biotech AG is currently generating about 0.04 per unit of volatility. If you would invest 3,985 in BB Biotech AG on September 2, 2024 and sell it today you would earn a total of 50.00 from holding BB Biotech AG or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. BB Biotech AG
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| BB Biotech AG |
ANTA SPORTS and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and BB Biotech
The main advantage of trading using opposite ANTA SPORTS and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, BB Biotech 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 BB Biotech will offset losses from the drop in BB Biotech'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 |
| BB Biotech vs. MHP Hotel AG | BB Biotech vs. Sunstone Hotel Investors | BB Biotech vs. Pebblebrook Hotel Trust | BB Biotech vs. DAIRY FARM INTL |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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