Correlation Between ANTA SPORTS and Schnitzer Steel
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Schnitzer Steel 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 Schnitzer Steel 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 Schnitzer Steel Industries, you can compare the effects of market volatilities on ANTA SPORTS and Schnitzer Steel 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 Schnitzer Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Schnitzer Steel.
Diversification Opportunities for ANTA SPORTS and Schnitzer Steel
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and Schnitzer is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Schnitzer Steel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schnitzer Steel Indu 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 Schnitzer Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schnitzer Steel Indu has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Schnitzer Steel go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Schnitzer Steel
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 0.34 times more return on investment than Schnitzer Steel. However, ANTA SPORTS PRODUCT is 2.96 times less risky than Schnitzer Steel. It trades about -0.22 of its potential returns per unit of risk. Schnitzer Steel Industries is currently generating about -0.46 per unit of risk. If you would invest 1,034 in ANTA SPORTS PRODUCT on October 13, 2024 and sell it today you would lose (76.00) from holding ANTA SPORTS PRODUCT or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Schnitzer Steel Industries
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Schnitzer Steel Indu |
ANTA SPORTS and Schnitzer Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Schnitzer Steel
The main advantage of trading using opposite ANTA SPORTS and Schnitzer Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Schnitzer Steel 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 Schnitzer Steel will offset losses from the drop in Schnitzer Steel'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 |
| Schnitzer Steel vs. RETAIL FOOD GROUP | Schnitzer Steel vs. FAST RETAIL ADR | Schnitzer Steel vs. BII Railway Transportation | Schnitzer Steel vs. ANTA SPORTS PRODUCT |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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