Correlation Between ANTA SPORTS and Lundin Energy
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Lundin Energy 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 Lundin Energy 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 Lundin Energy AB, you can compare the effects of market volatilities on ANTA SPORTS and Lundin Energy 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 Lundin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Lundin Energy.
Diversification Opportunities for ANTA SPORTS and Lundin Energy
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and Lundin is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Lundin Energy AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Energy AB 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 Lundin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Energy AB has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Lundin Energy go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Lundin Energy
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 0.97 times more return on investment than Lundin Energy. However, ANTA SPORTS PRODUCT is 1.03 times less risky than Lundin Energy. It trades about 0.07 of its potential returns per unit of risk. Lundin Energy AB is currently generating about -0.01 per unit of risk. If you would invest 654.00 in ANTA SPORTS PRODUCT on September 14, 2024 and sell it today you would earn a total of 380.00 from holding ANTA SPORTS PRODUCT or generate 58.1% 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. Lundin Energy AB
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Lundin Energy AB |
ANTA SPORTS and Lundin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Lundin Energy
The main advantage of trading using opposite ANTA SPORTS and Lundin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Lundin Energy 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 Lundin Energy will offset losses from the drop in Lundin Energy's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
| Lundin Energy vs. MagnaChip Semiconductor Corp | Lundin Energy vs. STMICROELECTRONICS | Lundin Energy vs. Nordic Semiconductor ASA | Lundin Energy vs. Meiko Electronics Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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