Correlation Between ANTA SPORTS and ULTRA CLEAN
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and ULTRA CLEAN 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 ULTRA CLEAN 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 ULTRA CLEAN HLDGS, you can compare the effects of market volatilities on ANTA SPORTS and ULTRA CLEAN 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 ULTRA CLEAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and ULTRA CLEAN.
Diversification Opportunities for ANTA SPORTS and ULTRA CLEAN
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANTA and ULTRA is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and ULTRA CLEAN HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ULTRA CLEAN HLDGS 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 ULTRA CLEAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ULTRA CLEAN HLDGS has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and ULTRA CLEAN go up and down completely randomly.
Pair Corralation between ANTA SPORTS and ULTRA CLEAN
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the ULTRA CLEAN. But the stock apears to be less risky and, when comparing its historical volatility, ANTA SPORTS PRODUCT is 1.21 times less risky than ULTRA CLEAN. The stock trades about -0.1 of its potential returns per unit of risk. The ULTRA CLEAN HLDGS is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 3,060 in ULTRA CLEAN HLDGS on September 1, 2024 and sell it today you would earn a total of 560.00 from holding ULTRA CLEAN HLDGS or generate 18.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. ULTRA CLEAN HLDGS
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| ULTRA CLEAN HLDGS |
ANTA SPORTS and ULTRA CLEAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and ULTRA CLEAN
The main advantage of trading using opposite ANTA SPORTS and ULTRA CLEAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, ULTRA CLEAN 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 ULTRA CLEAN will offset losses from the drop in ULTRA CLEAN's long position.| ANTA SPORTS vs. SIVERS SEMICONDUCTORS AB | ANTA SPORTS vs. Darden Restaurants | ANTA SPORTS vs. Reliance Steel Aluminum | ANTA SPORTS vs. Q2M Managementberatung AG |
| ULTRA CLEAN vs. DEVRY EDUCATION GRP | ULTRA CLEAN vs. WILLIS LEASE FIN | ULTRA CLEAN vs. G8 EDUCATION | ULTRA CLEAN vs. Grand Canyon Education |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |