Correlation Between ANTA SPORTS and Microsoft
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Microsoft 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 Microsoft 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 Microsoft, you can compare the effects of market volatilities on ANTA SPORTS and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Microsoft.
Diversification Opportunities for ANTA SPORTS and Microsoft
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANTA and Microsoft is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Microsoft go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Microsoft
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the Microsoft. In addition to that, ANTA SPORTS is 2.41 times more volatile than Microsoft. It trades about -0.11 of its total potential returns per unit of risk. Microsoft is currently generating about -0.24 per unit of volatility. If you would invest 42,795 in Microsoft on October 12, 2024 and sell it today you would lose (1,570) from holding Microsoft or give up 3.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Microsoft
Performance |
Timeline |
ANTA SPORTS PRODUCT |
Microsoft |
ANTA SPORTS and Microsoft Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANTA SPORTS and Microsoft
The main advantage of trading using opposite ANTA SPORTS and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.ANTA SPORTS vs. MPH Health Care | ANTA SPORTS vs. SALESFORCE INC CDR | ANTA SPORTS vs. NIGHTINGALE HEALTH EO | ANTA SPORTS vs. FEMALE HEALTH |
Microsoft vs. ANTA SPORTS PRODUCT | Microsoft vs. Salesforce | Microsoft vs. Jacquet Metal Service | Microsoft vs. ADRIATIC METALS LS 013355 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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