Correlation Between ANTA SPORTS and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE, you can compare the effects of market volatilities on ANTA SPORTS and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and GEELY AUTOMOBILE.
Diversification Opportunities for ANTA SPORTS and GEELY AUTOMOBILE
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANTA and GEELY is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEELY AUTOMOBILE has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between ANTA SPORTS and GEELY AUTOMOBILE
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.27 times more return on investment than GEELY AUTOMOBILE. However, ANTA SPORTS is 1.27 times more volatile than GEELY AUTOMOBILE. It trades about 0.23 of its potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about 0.04 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 87.00 from holding ANTA SPORTS PRODUCT or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. GEELY AUTOMOBILE
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| GEELY AUTOMOBILE |
ANTA SPORTS and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and GEELY AUTOMOBILE
The main advantage of trading using opposite ANTA SPORTS and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, GEELY AUTOMOBILE 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 GEELY AUTOMOBILE will offset losses from the drop in GEELY AUTOMOBILE's long position.| ANTA SPORTS vs. ECHO INVESTMENT ZY | ANTA SPORTS vs. FARM 51 GROUP | ANTA SPORTS vs. CHRYSALIS INVESTMENTS LTD | ANTA SPORTS vs. Apollo Investment Corp |
| GEELY AUTOMOBILE vs. Automatic Data Processing | GEELY AUTOMOBILE vs. Northern Data AG | GEELY AUTOMOBILE vs. Firan Technology Group | GEELY AUTOMOBILE vs. Addtech AB |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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