Correlation Between ANTA SPORTS and OPEN HOUSE
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and OPEN HOUSE 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 OPEN HOUSE 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 OPEN HOUSE GROUP, you can compare the effects of market volatilities on ANTA SPORTS and OPEN HOUSE 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 OPEN HOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and OPEN HOUSE.
Diversification Opportunities for ANTA SPORTS and OPEN HOUSE
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and OPEN is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and OPEN HOUSE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPEN HOUSE 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 OPEN HOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPEN HOUSE GROUP has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and OPEN HOUSE go up and down completely randomly.
Pair Corralation between ANTA SPORTS and OPEN HOUSE
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.42 times more return on investment than OPEN HOUSE. However, ANTA SPORTS is 1.42 times more volatile than OPEN HOUSE GROUP. It trades about 0.07 of its potential returns per unit of risk. OPEN HOUSE GROUP is currently generating about 0.06 per unit of risk. If you would invest 657.00 in ANTA SPORTS PRODUCT on September 12, 2024 and sell it today you would earn a total of 343.00 from holding ANTA SPORTS PRODUCT or generate 52.21% 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. OPEN HOUSE GROUP
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| OPEN HOUSE GROUP |
ANTA SPORTS and OPEN HOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and OPEN HOUSE
The main advantage of trading using opposite ANTA SPORTS and OPEN HOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, OPEN HOUSE 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 OPEN HOUSE will offset losses from the drop in OPEN HOUSE's long position.| ANTA SPORTS vs. Entravision Communications | ANTA SPORTS vs. Postal Savings Bank | ANTA SPORTS vs. HEMISPHERE EGY | ANTA SPORTS vs. Computershare Limited |
| OPEN HOUSE vs. BW OFFSHORE LTD | OPEN HOUSE vs. AIR PRODCHEMICALS | OPEN HOUSE vs. SIEM OFFSHORE NEW | OPEN HOUSE vs. KINGBOARD CHEMICAL |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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