Correlation Between ANTA SPORTS and Reinsurance Group
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Reinsurance Group 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 Reinsurance Group 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 Reinsurance Group of, you can compare the effects of market volatilities on ANTA SPORTS and Reinsurance Group 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 Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Reinsurance Group.
Diversification Opportunities for ANTA SPORTS and Reinsurance Group
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Reinsurance is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance 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 Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Reinsurance Group go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Reinsurance Group
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 1.22 times less return on investment than Reinsurance Group. In addition to that, ANTA SPORTS is 1.86 times more volatile than Reinsurance Group of. It trades about 0.04 of its total potential returns per unit of risk. Reinsurance Group of is currently generating about 0.09 per unit of volatility. If you would invest 13,176 in Reinsurance Group of on August 31, 2024 and sell it today you would earn a total of 8,424 from holding Reinsurance Group of or generate 63.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Reinsurance Group of
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Reinsurance Group |
ANTA SPORTS and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Reinsurance Group
The main advantage of trading using opposite ANTA SPORTS and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| ANTA SPORTS vs. SIVERS SEMICONDUCTORS AB | ANTA SPORTS vs. Darden Restaurants | ANTA SPORTS vs. Reliance Steel Aluminum | ANTA SPORTS vs. Q2M Managementberatung AG |
| Reinsurance Group vs. Corporate Travel Management | Reinsurance Group vs. XLMedia PLC | Reinsurance Group vs. Jupiter Fund Management | Reinsurance Group vs. Playtech 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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