Correlation Between ANTA SPORTS and SBM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and SBM OFFSHORE 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 SBM OFFSHORE 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 SBM OFFSHORE, you can compare the effects of market volatilities on ANTA SPORTS and SBM OFFSHORE 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 SBM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and SBM OFFSHORE.
Diversification Opportunities for ANTA SPORTS and SBM OFFSHORE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and SBM is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and SBM OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM OFFSHORE 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 SBM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM OFFSHORE has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and SBM OFFSHORE go up and down completely randomly.
Pair Corralation between ANTA SPORTS and SBM OFFSHORE
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.16 times more return on investment than SBM OFFSHORE. However, ANTA SPORTS is 1.16 times more volatile than SBM OFFSHORE. It trades about 0.13 of its potential returns per unit of risk. SBM OFFSHORE is currently generating about 0.15 per unit of risk. If you would invest 957.00 in ANTA SPORTS PRODUCT on October 30, 2024 and sell it today you would earn a total of 45.00 from holding ANTA SPORTS PRODUCT or generate 4.7% 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. SBM OFFSHORE
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| SBM OFFSHORE |
ANTA SPORTS and SBM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and SBM OFFSHORE
The main advantage of trading using opposite ANTA SPORTS and SBM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, SBM OFFSHORE 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 SBM OFFSHORE will offset losses from the drop in SBM OFFSHORE's long position.| ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. CHEMICAL INDUSTRIES | ANTA SPORTS vs. NorAm Drilling AS | ANTA SPORTS vs. SEKISUI CHEMICAL |
| SBM OFFSHORE vs. VIVA WINE GROUP | SBM OFFSHORE vs. Perseus Mining Limited | SBM OFFSHORE vs. Broadcom | SBM OFFSHORE vs. Television Broadcasts Limited |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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