Correlation Between ANTA SPORTS and Transportadora
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Transportadora 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 Transportadora 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 Transportadora de Gas, you can compare the effects of market volatilities on ANTA SPORTS and Transportadora 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 Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Transportadora.
Diversification Opportunities for ANTA SPORTS and Transportadora
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANTA and Transportadora is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Transportadora de Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportadora de Gas 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 Transportadora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportadora de Gas has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Transportadora go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Transportadora
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 3.43 times less return on investment than Transportadora. But when comparing it to its historical volatility, ANTA SPORTS PRODUCT is 1.07 times less risky than Transportadora. It trades about 0.04 of its potential returns per unit of risk. Transportadora de Gas is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,700 in Transportadora de Gas on August 28, 2024 and sell it today you would earn a total of 1,080 from holding Transportadora de Gas or generate 63.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Transportadora de Gas
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Transportadora de Gas |
ANTA SPORTS and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Transportadora
The main advantage of trading using opposite ANTA SPORTS and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Transportadora 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 Transportadora will offset losses from the drop in Transportadora's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
| Transportadora vs. Apple Inc | Transportadora vs. Apple Inc | Transportadora vs. Apple Inc | Transportadora vs. Apple Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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