Correlation Between ANTA SPORTS and Fevertree Drinks
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Fevertree Drinks 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 Fevertree Drinks 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 Fevertree Drinks Plc, you can compare the effects of market volatilities on ANTA SPORTS and Fevertree Drinks 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 Fevertree Drinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Fevertree Drinks.
Diversification Opportunities for ANTA SPORTS and Fevertree Drinks
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Fevertree is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Fevertree Drinks Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fevertree Drinks Plc 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 Fevertree Drinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fevertree Drinks Plc has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Fevertree Drinks go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Fevertree Drinks
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.36 times more return on investment than Fevertree Drinks. However, ANTA SPORTS is 1.36 times more volatile than Fevertree Drinks Plc. It trades about 0.05 of its potential returns per unit of risk. Fevertree Drinks Plc is currently generating about -0.06 per unit of risk. If you would invest 669.00 in ANTA SPORTS PRODUCT on September 12, 2024 and sell it today you would earn a total of 331.00 from holding ANTA SPORTS PRODUCT or generate 49.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Fevertree Drinks Plc
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Fevertree Drinks Plc |
ANTA SPORTS and Fevertree Drinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Fevertree Drinks
The main advantage of trading using opposite ANTA SPORTS and Fevertree Drinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Fevertree Drinks 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 Fevertree Drinks will offset losses from the drop in Fevertree Drinks' long position.| ANTA SPORTS vs. Entravision Communications | ANTA SPORTS vs. Postal Savings Bank | ANTA SPORTS vs. HEMISPHERE EGY | ANTA SPORTS vs. Computershare Limited |
| Fevertree Drinks vs. X FAB Silicon Foundries | Fevertree Drinks vs. AIR PRODCHEMICALS | Fevertree Drinks vs. LG Display Co | Fevertree Drinks vs. Mitsubishi Gas Chemical |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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