Correlation Between ANTA Sports and BANDAI NAMCO
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and BANDAI NAMCO 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 BANDAI NAMCO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA Sports Products and BANDAI NAMCO Holdings, you can compare the effects of market volatilities on ANTA Sports and BANDAI NAMCO 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 BANDAI NAMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and BANDAI NAMCO.
Diversification Opportunities for ANTA Sports and BANDAI NAMCO
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ANTA and BANDAI is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and BANDAI NAMCO Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANDAI NAMCO Holdings 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 Products are associated (or correlated) with BANDAI NAMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANDAI NAMCO Holdings has no effect on the direction of ANTA Sports i.e., ANTA Sports and BANDAI NAMCO go up and down completely randomly.
Pair Corralation between ANTA Sports and BANDAI NAMCO
Assuming the 90 days horizon ANTA Sports is expected to generate 8.72 times less return on investment than BANDAI NAMCO. But when comparing it to its historical volatility, ANTA Sports Products is 2.86 times less risky than BANDAI NAMCO. It trades about 0.02 of its potential returns per unit of risk. BANDAI NAMCO Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 261.00 in BANDAI NAMCO Holdings on September 3, 2024 and sell it today you would earn a total of 1,686 from holding BANDAI NAMCO Holdings or generate 645.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. BANDAI NAMCO Holdings
Performance |
| Timeline |
| ANTA Sports Products |
| BANDAI NAMCO Holdings |
ANTA Sports and BANDAI NAMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and BANDAI NAMCO
The main advantage of trading using opposite ANTA Sports and BANDAI NAMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, BANDAI NAMCO 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 BANDAI NAMCO will offset losses from the drop in BANDAI NAMCO's long position.| ANTA Sports vs. InterContinental Hotels Group | ANTA Sports vs. Ramsay Health Care | ANTA Sports vs. INTERCONT HOTELS | ANTA Sports vs. Sunstone Hotel Investors |
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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.
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