Correlation Between ANTA SPORTS and THRACE PLASTICS
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and THRACE PLASTICS 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 THRACE PLASTICS 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 THRACE PLASTICS, you can compare the effects of market volatilities on ANTA SPORTS and THRACE PLASTICS 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 THRACE PLASTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and THRACE PLASTICS.
Diversification Opportunities for ANTA SPORTS and THRACE PLASTICS
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANTA and THRACE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and THRACE PLASTICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THRACE PLASTICS 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 THRACE PLASTICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THRACE PLASTICS has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and THRACE PLASTICS go up and down completely randomly.
Pair Corralation between ANTA SPORTS and THRACE PLASTICS
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.78 times more return on investment than THRACE PLASTICS. However, ANTA SPORTS is 1.78 times more volatile than THRACE PLASTICS. It trades about 0.03 of its potential returns per unit of risk. THRACE PLASTICS is currently generating about 0.02 per unit of risk. If you would invest 776.00 in ANTA SPORTS PRODUCT on September 4, 2024 and sell it today you would earn a total of 171.00 from holding ANTA SPORTS PRODUCT or generate 22.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. THRACE PLASTICS
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| THRACE PLASTICS |
ANTA SPORTS and THRACE PLASTICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and THRACE PLASTICS
The main advantage of trading using opposite ANTA SPORTS and THRACE PLASTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, THRACE PLASTICS 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 THRACE PLASTICS will offset losses from the drop in THRACE PLASTICS's long position.| ANTA SPORTS vs. ECHO INVESTMENT ZY | ANTA SPORTS vs. SLR Investment Corp | ANTA SPORTS vs. Wyndham Hotels Resorts | ANTA SPORTS vs. Pembina Pipeline Corp |
| THRACE PLASTICS vs. BOSTON BEER A | THRACE PLASTICS vs. TYSON FOODS A | THRACE PLASTICS vs. PT Indofood Sukses | THRACE PLASTICS vs. Monster Beverage Corp |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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