Correlation Between ANTA SPORTS and EHEALTH
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and EHEALTH 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 EHEALTH 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 EHEALTH, you can compare the effects of market volatilities on ANTA SPORTS and EHEALTH 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 EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and EHEALTH.
Diversification Opportunities for ANTA SPORTS and EHEALTH
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and EHEALTH is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH 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 EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and EHEALTH go up and down completely randomly.
Pair Corralation between ANTA SPORTS and EHEALTH
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 1.8 times less return on investment than EHEALTH. In addition to that, ANTA SPORTS is 1.24 times more volatile than EHEALTH. It trades about 0.09 of its total potential returns per unit of risk. EHEALTH is currently generating about 0.2 per unit of volatility. If you would invest 360.00 in EHEALTH on August 31, 2024 and sell it today you would earn a total of 195.00 from holding EHEALTH or generate 54.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. EHEALTH
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| EHEALTH |
ANTA SPORTS and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and EHEALTH
The main advantage of trading using opposite ANTA SPORTS and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH'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 |
| EHEALTH vs. SIVERS SEMICONDUCTORS AB | EHEALTH vs. Darden Restaurants | EHEALTH vs. Reliance Steel Aluminum | EHEALTH vs. Q2M Managementberatung AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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