Correlation Between ANTA Sports and Tanaka CoLtd
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Tanaka CoLtd 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 Tanaka CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA Sports Products and Tanaka CoLtd, you can compare the effects of market volatilities on ANTA Sports and Tanaka CoLtd 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 Tanaka CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Tanaka CoLtd.
Diversification Opportunities for ANTA Sports and Tanaka CoLtd
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANTA and Tanaka is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Tanaka CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanaka CoLtd 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 Products are associated (or correlated) with Tanaka CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanaka CoLtd has no effect on the direction of ANTA Sports i.e., ANTA Sports and Tanaka CoLtd go up and down completely randomly.
Pair Corralation between ANTA Sports and Tanaka CoLtd
Assuming the 90 days trading horizon ANTA Sports Products is expected to generate 2.81 times more return on investment than Tanaka CoLtd. However, ANTA Sports is 2.81 times more volatile than Tanaka CoLtd. It trades about 0.16 of its potential returns per unit of risk. Tanaka CoLtd is currently generating about 0.25 per unit of risk. If you would invest 1,025 in ANTA Sports Products on December 4, 2024 and sell it today you would earn a total of 73.00 from holding ANTA Sports Products or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Tanaka CoLtd
Performance |
| Timeline |
| ANTA Sports Products |
| Tanaka CoLtd |
ANTA Sports and Tanaka CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Tanaka CoLtd
The main advantage of trading using opposite ANTA Sports and Tanaka CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Tanaka CoLtd 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 Tanaka CoLtd will offset losses from the drop in Tanaka CoLtd's long position.| ANTA Sports vs. North American Construction | ANTA Sports vs. Carnegie Clean Energy | ANTA Sports vs. Federal Agricultural Mortgage | ANTA Sports vs. AGRICULTBK HADR25 YC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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