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
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and Universal is 0.53. 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 generate 1.08 times more return on investment than Universal Entertainment. However, ANTA SPORTS is 1.08 times more volatile than Universal Entertainment. It trades about 0.03 of its potential returns per unit of risk. Universal Entertainment is currently generating about -0.05 per unit of risk. If you would invest 859.00 in ANTA SPORTS PRODUCT on November 2, 2024 and sell it today you would earn a total of 161.00 from holding ANTA SPORTS PRODUCT or generate 18.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| 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. PROSIEBENSAT1 MEDIADR4 | ANTA SPORTS vs. Coffee Holding Co | ANTA SPORTS vs. Computershare Limited | ANTA SPORTS vs. ETFS Coffee ETC |
| Universal Entertainment vs. Playtech plc | Universal Entertainment vs. BAKED GAMES SA | Universal Entertainment vs. PLAYMATES TOYS | Universal Entertainment vs. Hochschild Mining 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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