Correlation Between ANTA SPORTS and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Tianjin Capital 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 Tianjin Capital 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 Tianjin Capital Environmental, you can compare the effects of market volatilities on ANTA SPORTS and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Tianjin Capital.
Diversification Opportunities for ANTA SPORTS and Tianjin Capital
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and Tianjin is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Tianjin Capital go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Tianjin Capital
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 5.26 times less return on investment than Tianjin Capital. But when comparing it to its historical volatility, ANTA SPORTS PRODUCT is 1.83 times less risky than Tianjin Capital. It trades about 0.02 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Tianjin Capital Environmental on November 1, 2024 and sell it today you would earn a total of 28.00 from holding Tianjin Capital Environmental or generate 254.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Tianjin Capital Environmental
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Tianjin Capital Envi |
ANTA SPORTS and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Tianjin Capital
The main advantage of trading using opposite ANTA SPORTS and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| ANTA SPORTS vs. TAL Education Group | ANTA SPORTS vs. Federal Agricultural Mortgage | ANTA SPORTS vs. Tokyu Construction Co | ANTA SPORTS vs. EMBARK EDUCATION LTD |
| Tianjin Capital vs. Constellation Software | Tianjin Capital vs. ASURE SOFTWARE | Tianjin Capital vs. AAC TECHNOLOGHLDGADR | Tianjin Capital vs. Agilent Technologies |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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