Correlation Between ANTA SPORTS and UNITED UTILITIES
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and UNITED UTILITIES 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 UNITED UTILITIES 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 UNITED UTILITIES GR, you can compare the effects of market volatilities on ANTA SPORTS and UNITED UTILITIES 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 UNITED UTILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and UNITED UTILITIES.
Diversification Opportunities for ANTA SPORTS and UNITED UTILITIES
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and UNITED is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and UNITED UTILITIES GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED UTILITIES 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 UNITED UTILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED UTILITIES has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and UNITED UTILITIES go up and down completely randomly.
Pair Corralation between ANTA SPORTS and UNITED UTILITIES
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 3.57 times more return on investment than UNITED UTILITIES. However, ANTA SPORTS is 3.57 times more volatile than UNITED UTILITIES GR. It trades about 0.09 of its potential returns per unit of risk. UNITED UTILITIES GR is currently generating about 0.17 per unit of risk. If you would invest 750.00 in ANTA SPORTS PRODUCT on September 3, 2024 and sell it today you would earn a total of 177.00 from holding ANTA SPORTS PRODUCT or generate 23.6% 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. UNITED UTILITIES GR
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| UNITED UTILITIES |
ANTA SPORTS and UNITED UTILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and UNITED UTILITIES
The main advantage of trading using opposite ANTA SPORTS and UNITED UTILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, UNITED UTILITIES 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 UNITED UTILITIES will offset losses from the drop in UNITED UTILITIES's long position.| ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. JD SPORTS FASH | ANTA SPORTS vs. Columbia Sportswear | ANTA SPORTS vs. The Hanover Insurance |
| UNITED UTILITIES vs. ANTA SPORTS PRODUCT | UNITED UTILITIES vs. Transport International Holdings | UNITED UTILITIES vs. Sqs Software Quality | UNITED UTILITIES vs. PSI Software AG |
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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