Correlation Between ANTA SPORTS and Lendlease
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Lendlease 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 Lendlease 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 Lendlease Group, you can compare the effects of market volatilities on ANTA SPORTS and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Lendlease.
Diversification Opportunities for ANTA SPORTS and Lendlease
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANTA and Lendlease is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Lendlease go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Lendlease
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.73 times more return on investment than Lendlease. However, ANTA SPORTS is 1.73 times more volatile than Lendlease Group. It trades about 0.08 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.13 per unit of risk. If you would invest 982.00 in ANTA SPORTS PRODUCT on October 23, 2024 and sell it today you would earn a total of 22.00 from holding ANTA SPORTS PRODUCT or generate 2.24% 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. Lendlease Group
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Lendlease Group |
ANTA SPORTS and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Lendlease
The main advantage of trading using opposite ANTA SPORTS and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
| Lendlease vs. BOSTON BEER A | Lendlease vs. Tsingtao Brewery | Lendlease vs. National Beverage Corp | Lendlease 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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