Correlation Between ANTA SPORTS and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS, you can compare the effects of market volatilities on ANTA SPORTS and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and COSMOSTEEL HLDGS.
Diversification Opportunities for ANTA SPORTS and COSMOSTEEL HLDGS
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and COSMOSTEEL is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between ANTA SPORTS and COSMOSTEEL HLDGS
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 2.04 times more return on investment than COSMOSTEEL HLDGS. However, ANTA SPORTS is 2.04 times more volatile than COSMOSTEEL HLDGS. It trades about 0.1 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about 0.01 per unit of risk. If you would invest 743.00 in ANTA SPORTS PRODUCT on September 2, 2024 and sell it today you would earn a total of 184.00 from holding ANTA SPORTS PRODUCT or generate 24.76% 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. COSMOSTEEL HLDGS
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| COSMOSTEEL HLDGS |
ANTA SPORTS and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and COSMOSTEEL HLDGS
The main advantage of trading using opposite ANTA SPORTS and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS'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 |
| COSMOSTEEL HLDGS vs. MOVIE GAMES SA | COSMOSTEEL HLDGS vs. American Airlines Group | COSMOSTEEL HLDGS vs. BW OFFSHORE LTD | COSMOSTEEL HLDGS vs. Aegean Airlines SA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |