Correlation Between ANTA SPORTS and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on ANTA SPORTS and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Jacquet Metal.
Diversification Opportunities for ANTA SPORTS and Jacquet Metal
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Jacquet is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Jacquet Metal go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Jacquet Metal
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 2.52 times less return on investment than Jacquet Metal. In addition to that, ANTA SPORTS is 1.84 times more volatile than Jacquet Metal Service. It trades about 0.06 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.28 per unit of volatility. If you would invest 1,548 in Jacquet Metal Service on September 28, 2024 and sell it today you would earn a total of 152.00 from holding Jacquet Metal Service or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Jacquet Metal Service
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Jacquet Metal Service |
ANTA SPORTS and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Jacquet Metal
The main advantage of trading using opposite ANTA SPORTS and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| ANTA SPORTS vs. Khiron Life Sciences | ANTA SPORTS vs. Nippon Steel | ANTA SPORTS vs. United States Steel | ANTA SPORTS vs. COMBA TELECOM SYST |
| Jacquet Metal vs. Nucor | Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Steel Dynamics |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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