Correlation Between ANTA SPORTS and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and QBE Insurance 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 QBE Insurance 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 QBE Insurance Group, you can compare the effects of market volatilities on ANTA SPORTS and QBE Insurance 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 QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and QBE Insurance.
Diversification Opportunities for ANTA SPORTS and QBE Insurance
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and QBE is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and QBE Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QBE Insurance 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 QBE Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QBE Insurance Group has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and QBE Insurance go up and down completely randomly.
Pair Corralation between ANTA SPORTS and QBE Insurance
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.73 times more return on investment than QBE Insurance. However, ANTA SPORTS is 1.73 times more volatile than QBE Insurance Group. It trades about 0.2 of its potential returns per unit of risk. QBE Insurance Group is currently generating about 0.18 per unit of risk. If you would invest 940.00 in ANTA SPORTS PRODUCT on November 4, 2024 and sell it today you would earn a total of 80.00 from holding ANTA SPORTS PRODUCT or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. QBE Insurance Group
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| QBE Insurance Group |
ANTA SPORTS and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and QBE Insurance
The main advantage of trading using opposite ANTA SPORTS and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, QBE Insurance 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 QBE Insurance will offset losses from the drop in QBE Insurance's long position.| ANTA SPORTS vs. KENEDIX OFFICE INV | ANTA SPORTS vs. DFS Furniture PLC | ANTA SPORTS vs. CLEAN ENERGY FUELS | ANTA SPORTS vs. The Home Depot |
| QBE Insurance vs. Kingdee International Software | QBE Insurance vs. ANTA SPORTS PRODUCT | QBE Insurance vs. PENN Entertainment | QBE Insurance vs. Prosiebensat 1 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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