Correlation Between ANTA SPORTS and Huaneng Power
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Huaneng Power 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 Huaneng Power 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 Huaneng Power International, you can compare the effects of market volatilities on ANTA SPORTS and Huaneng Power 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 Huaneng Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Huaneng Power.
Diversification Opportunities for ANTA SPORTS and Huaneng Power
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANTA and Huaneng is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Huaneng Power International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaneng Power Intern 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 Huaneng Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaneng Power Intern has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Huaneng Power go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Huaneng Power
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.34 times more return on investment than Huaneng Power. However, ANTA SPORTS is 1.34 times more volatile than Huaneng Power International. It trades about -0.1 of its potential returns per unit of risk. Huaneng Power International is currently generating about -0.37 per unit of risk. If you would invest 988.00 in ANTA SPORTS PRODUCT on October 15, 2024 and sell it today you would lose (30.00) from holding ANTA SPORTS PRODUCT or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Huaneng Power International
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Huaneng Power Intern |
ANTA SPORTS and Huaneng Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Huaneng Power
The main advantage of trading using opposite ANTA SPORTS and Huaneng Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Huaneng Power 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 Huaneng Power will offset losses from the drop in Huaneng Power's long position.| ANTA SPORTS vs. Forsys Metals Corp | ANTA SPORTS vs. PICKN PAY STORES | ANTA SPORTS vs. BJs Wholesale Club | ANTA SPORTS vs. COSTCO WHOLESALE CDR |
| Huaneng Power vs. Forsys Metals Corp | Huaneng Power vs. Aya Gold Silver | Huaneng Power vs. Perseus Mining Limited | Huaneng Power vs. GALENA MINING LTD |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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