Correlation Between ANTA Sports and Yamaha
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Yamaha 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 Yamaha 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 Yamaha, you can compare the effects of market volatilities on ANTA Sports and Yamaha 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 Yamaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Yamaha.
Diversification Opportunities for ANTA Sports and Yamaha
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANTA and Yamaha is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Yamaha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha 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 Yamaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha has no effect on the direction of ANTA Sports i.e., ANTA Sports and Yamaha go up and down completely randomly.
Pair Corralation between ANTA Sports and Yamaha
Assuming the 90 days horizon ANTA Sports Products is expected to generate 1.9 times more return on investment than Yamaha. However, ANTA Sports is 1.9 times more volatile than Yamaha. It trades about 0.25 of its potential returns per unit of risk. Yamaha is currently generating about 0.15 per unit of risk. If you would invest 922.00 in ANTA Sports Products on November 6, 2024 and sell it today you would earn a total of 100.00 from holding ANTA Sports Products or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA Sports Products vs. Yamaha
Performance |
| Timeline |
| ANTA Sports Products |
| Yamaha |
ANTA Sports and Yamaha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA Sports and Yamaha
The main advantage of trading using opposite ANTA Sports and Yamaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Yamaha 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 Yamaha will offset losses from the drop in Yamaha's long position.| ANTA Sports vs. Penta Ocean Construction Co | ANTA Sports vs. China Railway Construction | ANTA Sports vs. Sumitomo Mitsui Construction | ANTA Sports vs. Scientific Games |
| Yamaha vs. MOVIE GAMES SA | Yamaha vs. TROPHY GAMES DEV | Yamaha vs. Bio Techne Corp | Yamaha vs. Minerals Technologies |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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