Correlation Between ANTA SPORTS and Insurance Australia
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Insurance Australia 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 Insurance Australia 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 Insurance Australia Group, you can compare the effects of market volatilities on ANTA SPORTS and Insurance Australia 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 Insurance Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Insurance Australia.
Diversification Opportunities for ANTA SPORTS and Insurance Australia
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Insurance is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Insurance Australia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insurance Australia 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 Insurance Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insurance Australia has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Insurance Australia go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Insurance Australia
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the Insurance Australia. But the stock apears to be less risky and, when comparing its historical volatility, ANTA SPORTS PRODUCT is 1.16 times less risky than Insurance Australia. The stock trades about -0.25 of its potential returns per unit of risk. The Insurance Australia Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Insurance Australia Group on August 28, 2024 and sell it today you would earn a total of 48.00 from holding Insurance Australia Group or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Insurance Australia Group
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Insurance Australia |
ANTA SPORTS and Insurance Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Insurance Australia
The main advantage of trading using opposite ANTA SPORTS and Insurance Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Insurance Australia 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 Insurance Australia will offset losses from the drop in Insurance Australia's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
| Insurance Australia vs. Superior Plus Corp | Insurance Australia vs. NMI Holdings | Insurance Australia vs. Origin Agritech | Insurance Australia vs. SIVERS SEMICONDUCTORS AB |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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