Correlation Between ANTA SPORTS and CME
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and CME 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 CME 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 CME Group, you can compare the effects of market volatilities on ANTA SPORTS and CME 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 CME. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and CME.
Diversification Opportunities for ANTA SPORTS and CME
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and CME is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and CME Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CME 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 CME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CME Group has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and CME go up and down completely randomly.
Pair Corralation between ANTA SPORTS and CME
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 2.77 times more return on investment than CME. However, ANTA SPORTS is 2.77 times more volatile than CME Group. It trades about 0.07 of its potential returns per unit of risk. CME Group is currently generating about 0.07 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. CME Group
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| CME Group |
ANTA SPORTS and CME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and CME
The main advantage of trading using opposite ANTA SPORTS and CME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, CME 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 CME will offset losses from the drop in CME's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |