Correlation Between ANTA SPORTS and Universal Entertainment
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Universal Entertainment 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 Universal Entertainment 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 Universal Entertainment, you can compare the effects of market volatilities on ANTA SPORTS and Universal Entertainment 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 Universal Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Universal Entertainment.
Diversification Opportunities for ANTA SPORTS and Universal Entertainment
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and Universal is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Universal Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Entertainment 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 Universal Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Entertainment has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Universal Entertainment go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Universal Entertainment
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the Universal Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, ANTA SPORTS PRODUCT is 2.59 times less risky than Universal Entertainment. The stock trades about -0.25 of its potential returns per unit of risk. The Universal Entertainment is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 750.00 in Universal Entertainment on August 29, 2024 and sell it today you would lose (95.00) from holding Universal Entertainment or give up 12.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Universal Entertainment
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Universal Entertainment |
ANTA SPORTS and Universal Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Universal Entertainment
The main advantage of trading using opposite ANTA SPORTS and Universal Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Universal Entertainment 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 Universal Entertainment will offset losses from the drop in Universal Entertainment's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
| Universal Entertainment vs. Apple Inc | Universal Entertainment vs. Apple Inc | Universal Entertainment vs. Microsoft | Universal Entertainment vs. Microsoft |
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 CEOs Directory module to screen CEOs from public companies around the world.
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