Correlation Between ANTA Sports and G-III Apparel
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and G-III Apparel 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 G-III Apparel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA Sports Products and G III Apparel Group, you can compare the effects of market volatilities on ANTA Sports and G-III Apparel 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 G-III Apparel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and G-III Apparel.
Diversification Opportunities for ANTA Sports and G-III Apparel
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANTA and G-III is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 Products are associated (or correlated) with G-III Apparel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of ANTA Sports i.e., ANTA Sports and G-III Apparel go up and down completely randomly.
Pair Corralation between ANTA Sports and G-III Apparel
Assuming the 90 days trading horizon ANTA Sports Products is expected to generate 1.17 times more return on investment than G-III Apparel. However, ANTA Sports is 1.17 times more volatile than G III Apparel Group. It trades about 0.16 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.35 per unit of risk. If you would invest 1,025 in ANTA Sports Products on December 4, 2024 and sell it today you would earn a total of 73.00 from holding ANTA Sports Products or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ANTA Sports Products vs. G III Apparel Group
Performance |
| Timeline |
| ANTA Sports Products |
| G III Apparel |
ANTA Sports and G-III Apparel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and G-III Apparel
The main advantage of trading using opposite ANTA Sports and G-III Apparel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, G-III Apparel 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 G-III Apparel will offset losses from the drop in G-III Apparel's long position.| ANTA Sports vs. North American Construction | ANTA Sports vs. Carnegie Clean Energy | ANTA Sports vs. Federal Agricultural Mortgage | ANTA Sports vs. AGRICULTBK HADR25 YC |
| G-III Apparel vs. DICKS Sporting Goods | G-III Apparel vs. United States Steel | G-III Apparel vs. COLUMBIA SPORTSWEAR | G-III Apparel vs. GUILD ESPORTS PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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