Correlation Between ANTA SPORTS and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Pembina Pipeline 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 Pembina Pipeline 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 Pembina Pipeline Corp, you can compare the effects of market volatilities on ANTA SPORTS and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Pembina Pipeline.
Diversification Opportunities for ANTA SPORTS and Pembina Pipeline
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Pembina is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Pembina Pipeline go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Pembina Pipeline
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the Pembina Pipeline. In addition to that, ANTA SPORTS is 1.61 times more volatile than Pembina Pipeline Corp. It trades about -0.22 of its total potential returns per unit of risk. Pembina Pipeline Corp is currently generating about -0.08 per unit of volatility. If you would invest 3,636 in Pembina Pipeline Corp on October 13, 2024 and sell it today you would lose (63.00) from holding Pembina Pipeline Corp or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Pembina Pipeline Corp
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Pembina Pipeline Corp |
ANTA SPORTS and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Pembina Pipeline
The main advantage of trading using opposite ANTA SPORTS and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| ANTA SPORTS vs. Canadian Utilities Limited | ANTA SPORTS vs. IDP EDUCATION LTD | ANTA SPORTS vs. ALGOMA STEEL GROUP | ANTA SPORTS vs. RELIANCE STEEL AL |
| Pembina Pipeline vs. ATRESMEDIA | Pembina Pipeline vs. Tyson Foods | Pembina Pipeline vs. ANTA SPORTS PRODUCT | Pembina Pipeline vs. CNVISION MEDIA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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