Correlation Between ANTA SPORTS and Neste Oyj
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Neste Oyj 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 Neste Oyj 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 Neste Oyj, you can compare the effects of market volatilities on ANTA SPORTS and Neste Oyj 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 Neste Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Neste Oyj.
Diversification Opportunities for ANTA SPORTS and Neste Oyj
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and Neste is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Neste Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neste Oyj 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 Neste Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neste Oyj has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Neste Oyj go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Neste Oyj
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the Neste Oyj. But the stock apears to be less risky and, when comparing its historical volatility, ANTA SPORTS PRODUCT is 1.61 times less risky than Neste Oyj. The stock trades about -0.24 of its potential returns per unit of risk. The Neste Oyj is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,480 in Neste Oyj on August 29, 2024 and sell it today you would lose (74.00) from holding Neste Oyj or give up 5.0% 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. Neste Oyj
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Neste Oyj |
ANTA SPORTS and Neste Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Neste Oyj
The main advantage of trading using opposite ANTA SPORTS and Neste Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Neste Oyj 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 Neste Oyj will offset losses from the drop in Neste Oyj's long position.| ANTA SPORTS vs. SEALED AIR | ANTA SPORTS vs. SYSTEMAIR AB | ANTA SPORTS vs. HF SINCLAIR P | ANTA SPORTS vs. Enter Air SA |
| Neste Oyj vs. UNITED UTILITIES GR | Neste Oyj vs. Lion One Metals | Neste Oyj vs. Kaiser Aluminum | Neste Oyj vs. NAKED WINES PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
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