Correlation Between ANTA SPORTS and Equinor ASA
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Equinor ASA 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 Equinor ASA 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 Equinor ASA, you can compare the effects of market volatilities on ANTA SPORTS and Equinor ASA 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 Equinor ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Equinor ASA.
Diversification Opportunities for ANTA SPORTS and Equinor ASA
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and Equinor is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Equinor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinor ASA 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 Equinor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinor ASA has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Equinor ASA go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Equinor ASA
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.31 times more return on investment than Equinor ASA. However, ANTA SPORTS is 1.31 times more volatile than Equinor ASA. It trades about 0.23 of its potential returns per unit of risk. Equinor ASA is currently generating about -0.09 per unit of risk. If you would invest 933.00 in ANTA SPORTS PRODUCT on November 6, 2024 and sell it today you would earn a total of 87.00 from holding ANTA SPORTS PRODUCT or generate 9.32% 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. Equinor ASA
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Equinor ASA |
ANTA SPORTS and Equinor ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Equinor ASA
The main advantage of trading using opposite ANTA SPORTS and Equinor ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Equinor ASA 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 Equinor ASA will offset losses from the drop in Equinor ASA's long position.| ANTA SPORTS vs. SCANSOURCE | ANTA SPORTS vs. LIFENET INSURANCE CO | ANTA SPORTS vs. Tower One Wireless | ANTA SPORTS vs. MAVEN WIRELESS SWEDEN |
| Equinor ASA vs. Exxon Mobil | Equinor ASA vs. Chevron | Equinor ASA vs. TotalEnergies SE | Equinor ASA vs. TotalEnergies SE |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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