Correlation Between ANTA SPORTS and VIVA WINE
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and VIVA WINE 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 VIVA WINE 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 VIVA WINE GROUP, you can compare the effects of market volatilities on ANTA SPORTS and VIVA WINE 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 VIVA WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and VIVA WINE.
Diversification Opportunities for ANTA SPORTS and VIVA WINE
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANTA and VIVA is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and VIVA WINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVA WINE GROUP 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 VIVA WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVA WINE GROUP has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and VIVA WINE go up and down completely randomly.
Pair Corralation between ANTA SPORTS and VIVA WINE
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the VIVA WINE. In addition to that, ANTA SPORTS is 1.32 times more volatile than VIVA WINE GROUP. It trades about -0.09 of its total potential returns per unit of risk. VIVA WINE GROUP is currently generating about -0.07 per unit of volatility. If you would invest 335.00 in VIVA WINE GROUP on October 12, 2024 and sell it today you would lose (7.00) from holding VIVA WINE GROUP or give up 2.09% 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. VIVA WINE GROUP
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| VIVA WINE GROUP |
ANTA SPORTS and VIVA WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and VIVA WINE
The main advantage of trading using opposite ANTA SPORTS and VIVA WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, VIVA WINE 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 VIVA WINE will offset losses from the drop in VIVA WINE's long position.| ANTA SPORTS vs. MagnaChip Semiconductor Corp | ANTA SPORTS vs. ELMOS SEMICONDUCTOR | ANTA SPORTS vs. Pembina Pipeline Corp | ANTA SPORTS vs. BOSTON BEER A |
| VIVA WINE vs. Elmos Semiconductor SE | VIVA WINE vs. Taiwan Semiconductor Manufacturing | VIVA WINE vs. Semiconductor Manufacturing International | VIVA WINE vs. Alfa Financial Software |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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