Correlation Between ANTA SPORTS and Cisco Systems
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Cisco Systems 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 Cisco Systems 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 Cisco Systems, you can compare the effects of market volatilities on ANTA SPORTS and Cisco Systems 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 Cisco Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Cisco Systems.
Diversification Opportunities for ANTA SPORTS and Cisco Systems
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and Cisco is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Cisco Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cisco Systems 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 Cisco Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cisco Systems has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Cisco Systems go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Cisco Systems
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the Cisco Systems. In addition to that, ANTA SPORTS is 1.44 times more volatile than Cisco Systems. It trades about -0.1 of its total potential returns per unit of risk. Cisco Systems is currently generating about 0.34 per unit of volatility. If you would invest 5,000 in Cisco Systems on September 1, 2024 and sell it today you would earn a total of 585.00 from holding Cisco Systems or generate 11.7% 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. Cisco Systems
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Cisco Systems |
ANTA SPORTS and Cisco Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Cisco Systems
The main advantage of trading using opposite ANTA SPORTS and Cisco Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Cisco Systems 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 Cisco Systems will offset losses from the drop in Cisco Systems' 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 |
| Cisco Systems vs. Playtech plc | Cisco Systems vs. Electronic Arts | Cisco Systems vs. ANTA SPORTS PRODUCT | Cisco Systems vs. USWE SPORTS 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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