Correlation Between ANTA SPORTS and GOODYEAR T
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and GOODYEAR T 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 GOODYEAR T 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 GOODYEAR T RUBBER, you can compare the effects of market volatilities on ANTA SPORTS and GOODYEAR T 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 GOODYEAR T. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and GOODYEAR T.
Diversification Opportunities for ANTA SPORTS and GOODYEAR T
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and GOODYEAR is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and GOODYEAR T RUBBER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOODYEAR T RUBBER 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 GOODYEAR T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOODYEAR T RUBBER has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and GOODYEAR T go up and down completely randomly.
Pair Corralation between ANTA SPORTS and GOODYEAR T
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 0.93 times more return on investment than GOODYEAR T. However, ANTA SPORTS PRODUCT is 1.08 times less risky than GOODYEAR T. It trades about 0.2 of its potential returns per unit of risk. GOODYEAR T RUBBER is currently generating about 0.04 per unit of risk. If you would invest 940.00 in ANTA SPORTS PRODUCT on November 4, 2024 and sell it today you would earn a total of 80.00 from holding ANTA SPORTS PRODUCT or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. GOODYEAR T RUBBER
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| GOODYEAR T RUBBER |
ANTA SPORTS and GOODYEAR T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and GOODYEAR T
The main advantage of trading using opposite ANTA SPORTS and GOODYEAR T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, GOODYEAR T 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 GOODYEAR T will offset losses from the drop in GOODYEAR T's long position.| ANTA SPORTS vs. KENEDIX OFFICE INV | ANTA SPORTS vs. DFS Furniture PLC | ANTA SPORTS vs. CLEAN ENERGY FUELS | ANTA SPORTS vs. The Home Depot |
| GOODYEAR T vs. Vulcan Materials | GOODYEAR T vs. Summit Materials | GOODYEAR T vs. China National Building | GOODYEAR T vs. Penta Ocean Construction Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |