Correlation Between ANTA SPORTS and General Mills
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and General Mills 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 General Mills 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 General Mills, you can compare the effects of market volatilities on ANTA SPORTS and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and General Mills.
Diversification Opportunities for ANTA SPORTS and General Mills
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANTA and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and General Mills go up and down completely randomly.
Pair Corralation between ANTA SPORTS and General Mills
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.52 times more return on investment than General Mills. However, ANTA SPORTS is 1.52 times more volatile than General Mills. It trades about 0.28 of its potential returns per unit of risk. General Mills is currently generating about -0.16 per unit of risk. If you would invest 933.00 in ANTA SPORTS PRODUCT on November 7, 2024 and sell it today you would earn a total of 116.00 from holding ANTA SPORTS PRODUCT or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. General Mills
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| General Mills |
ANTA SPORTS and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and General Mills
The main advantage of trading using opposite ANTA SPORTS and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| ANTA SPORTS vs. SCANSOURCE | ANTA SPORTS vs. LIFENET INSURANCE CO | ANTA SPORTS vs. Tower One Wireless | ANTA SPORTS vs. MAVEN WIRELESS SWEDEN |
| General Mills vs. Nestl SA | General Mills vs. Kraft Heinz Co | General Mills vs. General Mills | General Mills vs. Danone SA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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