Correlation Between ANTA SPORTS and Hisense Home
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Hisense Home 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 Hisense Home 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 Hisense Home Appliances, you can compare the effects of market volatilities on ANTA SPORTS and Hisense Home 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 Hisense Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Hisense Home.
Diversification Opportunities for ANTA SPORTS and Hisense Home
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ANTA and Hisense is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Hisense Home Appliances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisense Home Appliances 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 Hisense Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisense Home Appliances has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Hisense Home go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Hisense Home
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 7.39 times less return on investment than Hisense Home. But when comparing it to its historical volatility, ANTA SPORTS PRODUCT is 1.45 times less risky than Hisense Home. It trades about 0.02 of its potential returns per unit of risk. Hisense Home Appliances is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Hisense Home Appliances on September 19, 2024 and sell it today you would earn a total of 224.00 from holding Hisense Home Appliances or generate 344.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Hisense Home Appliances
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Hisense Home Appliances |
ANTA SPORTS and Hisense Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Hisense Home
The main advantage of trading using opposite ANTA SPORTS and Hisense Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Hisense Home 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 Hisense Home will offset losses from the drop in Hisense Home's long position.| ANTA SPORTS vs. Nufarm Limited | ANTA SPORTS vs. Titan Machinery | ANTA SPORTS vs. Dairy Farm International | ANTA SPORTS vs. TITAN MACHINERY |
| Hisense Home vs. Superior Plus Corp | Hisense Home vs. SIVERS SEMICONDUCTORS AB | Hisense Home vs. NorAm Drilling AS | Hisense Home vs. Norsk Hydro ASA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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