Correlation Between ANTA SPORTS and Sporttotal
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Sporttotal 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 Sporttotal 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 Sporttotal AG, you can compare the effects of market volatilities on ANTA SPORTS and Sporttotal 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 Sporttotal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Sporttotal.
Diversification Opportunities for ANTA SPORTS and Sporttotal
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and Sporttotal is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Sporttotal AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporttotal AG 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 Sporttotal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporttotal AG has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Sporttotal go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Sporttotal
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 0.92 times more return on investment than Sporttotal. However, ANTA SPORTS PRODUCT is 1.09 times less risky than Sporttotal. It trades about 0.04 of its potential returns per unit of risk. Sporttotal AG is currently generating about -0.13 per unit of risk. If you would invest 851.00 in ANTA SPORTS PRODUCT on August 28, 2024 and sell it today you would earn a total of 86.00 from holding ANTA SPORTS PRODUCT or generate 10.11% 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. Sporttotal AG
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Sporttotal AG |
ANTA SPORTS and Sporttotal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Sporttotal
The main advantage of trading using opposite ANTA SPORTS and Sporttotal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Sporttotal 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 Sporttotal will offset losses from the drop in Sporttotal's long position.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |