Correlation Between ANTA SPORTS and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Nordic Semiconductor 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 Nordic Semiconductor 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 Nordic Semiconductor ASA, you can compare the effects of market volatilities on ANTA SPORTS and Nordic Semiconductor 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 Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Nordic Semiconductor.
Diversification Opportunities for ANTA SPORTS and Nordic Semiconductor
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANTA and Nordic is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA 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 Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Nordic Semiconductor
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 0.95 times more return on investment than Nordic Semiconductor. However, ANTA SPORTS PRODUCT is 1.05 times less risky than Nordic Semiconductor. It trades about -0.25 of its potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about -0.28 per unit of risk. If you would invest 1,050 in ANTA SPORTS PRODUCT on August 29, 2024 and sell it today you would lose (113.00) from holding ANTA SPORTS PRODUCT or give up 10.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Nordic Semiconductor ASA |
ANTA SPORTS and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Nordic Semiconductor
The main advantage of trading using opposite ANTA SPORTS and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Nordic Semiconductor 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 Nordic Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
| Nordic Semiconductor vs. Siamgas And Petrochemicals | Nordic Semiconductor vs. TYSON FOODS A | Nordic Semiconductor vs. JJ SNACK FOODS | Nordic Semiconductor 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets |