Correlation Between ANTA SPORTS and SENECA FOODS
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and SENECA FOODS 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 SENECA FOODS 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 SENECA FOODS A, you can compare the effects of market volatilities on ANTA SPORTS and SENECA FOODS 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 SENECA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and SENECA FOODS.
Diversification Opportunities for ANTA SPORTS and SENECA FOODS
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANTA and SENECA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and SENECA FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENECA FOODS A 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 SENECA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENECA FOODS A has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and SENECA FOODS go up and down completely randomly.
Pair Corralation between ANTA SPORTS and SENECA FOODS
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to under-perform the SENECA FOODS. But the stock apears to be less risky and, when comparing its historical volatility, ANTA SPORTS PRODUCT is 1.27 times less risky than SENECA FOODS. The stock trades about -0.22 of its potential returns per unit of risk. The SENECA FOODS A is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,650 in SENECA FOODS A on August 30, 2024 and sell it today you would earn a total of 850.00 from holding SENECA FOODS A or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. SENECA FOODS A
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| SENECA FOODS A |
ANTA SPORTS and SENECA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and SENECA FOODS
The main advantage of trading using opposite ANTA SPORTS and SENECA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, SENECA FOODS 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 SENECA FOODS will offset losses from the drop in SENECA FOODS's long position.| ANTA SPORTS vs. InPlay Oil Corp | ANTA SPORTS vs. Harmony Gold Mining | ANTA SPORTS vs. Playa Hotels Resorts | ANTA SPORTS vs. Norwegian Air Shuttle |
| SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Superior Plus Corp | SENECA FOODS vs. SIVERS SEMICONDUCTORS AB |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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