Correlation Between ANTA SPORTS and LG Display
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and LG Display 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 LG Display 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 LG Display Co, you can compare the effects of market volatilities on ANTA SPORTS and LG Display 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 LG Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and LG Display.
Diversification Opportunities for ANTA SPORTS and LG Display
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and LGA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and LG Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Display 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 LG Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Display has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and LG Display go up and down completely randomly.
Pair Corralation between ANTA SPORTS and LG Display
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.19 times more return on investment than LG Display. However, ANTA SPORTS is 1.19 times more volatile than LG Display Co. It trades about 0.04 of its potential returns per unit of risk. LG Display Co is currently generating about -0.05 per unit of risk. If you would invest 698.00 in ANTA SPORTS PRODUCT on August 31, 2024 and sell it today you would earn a total of 229.00 from holding ANTA SPORTS PRODUCT or generate 32.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. LG Display Co
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| LG Display |
ANTA SPORTS and LG Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and LG Display
The main advantage of trading using opposite ANTA SPORTS and LG Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, LG Display 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 LG Display will offset losses from the drop in LG Display's long position.| ANTA SPORTS vs. SIVERS SEMICONDUCTORS AB | ANTA SPORTS vs. Darden Restaurants | ANTA SPORTS vs. Reliance Steel Aluminum | ANTA SPORTS vs. Q2M Managementberatung AG |
| LG Display vs. SK TELECOM TDADR | LG Display vs. Rogers Communications | LG Display vs. Entravision Communications | LG Display vs. Singapore Telecommunications 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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