Correlation Between ANTA SPORTS and GigaMedia
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on ANTA SPORTS and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and GigaMedia.
Diversification Opportunities for ANTA SPORTS and GigaMedia
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and GigaMedia is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and GigaMedia go up and down completely randomly.
Pair Corralation between ANTA SPORTS and GigaMedia
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the GigaMedia. But the stock apears to be less risky and, when comparing its historical volatility, ANTA SPORTS PRODUCT is 1.06 times less risky than GigaMedia. The stock trades about -0.12 of its potential returns per unit of risk. The GigaMedia is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 120.00 in GigaMedia on August 25, 2024 and sell it today you would earn a total of 16.00 from holding GigaMedia or generate 13.33% 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. GigaMedia
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| GigaMedia |
ANTA SPORTS and GigaMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and GigaMedia
The main advantage of trading using opposite ANTA SPORTS and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia's long position.| ANTA SPORTS vs. ALTAIR RES INC | ANTA SPORTS vs. Alaska Air Group | ANTA SPORTS vs. Ryanair Holdings plc | ANTA SPORTS vs. Westinghouse Air Brake |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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