Correlation Between ANTA SPORTS and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Deutsche Post 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 Deutsche Post 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 Deutsche Post AG, you can compare the effects of market volatilities on ANTA SPORTS and Deutsche Post 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 Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Deutsche Post.
Diversification Opportunities for ANTA SPORTS and Deutsche Post
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and Deutsche is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post 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 Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Deutsche Post go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Deutsche Post
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.39 times more return on investment than Deutsche Post. However, ANTA SPORTS is 1.39 times more volatile than Deutsche Post AG. It trades about 0.09 of its potential returns per unit of risk. Deutsche Post AG is currently generating about 0.05 per unit of risk. If you would invest 927.00 in ANTA SPORTS PRODUCT on October 30, 2024 and sell it today you would earn a total of 75.00 from holding ANTA SPORTS PRODUCT or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Deutsche Post AG
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Deutsche Post AG |
ANTA SPORTS and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Deutsche Post
The main advantage of trading using opposite ANTA SPORTS and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.| ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. CHEMICAL INDUSTRIES | ANTA SPORTS vs. NorAm Drilling AS | ANTA SPORTS vs. SEKISUI CHEMICAL |
| Deutsche Post vs. STRAYER EDUCATION | Deutsche Post vs. Laureate Education | Deutsche Post vs. North American Construction | Deutsche Post vs. CAREER EDUCATION |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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