Correlation Between BLUESCOPE STEEL and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both BLUESCOPE STEEL and ANTA Sports 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 BLUESCOPE STEEL and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BLUESCOPE STEEL and ANTA Sports Products, you can compare the effects of market volatilities on BLUESCOPE STEEL and ANTA Sports 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 BLUESCOPE STEEL with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLUESCOPE STEEL and ANTA Sports.
Diversification Opportunities for BLUESCOPE STEEL and ANTA Sports
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BLUESCOPE and ANTA is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding BLUESCOPE STEEL and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products and BLUESCOPE STEEL 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 BLUESCOPE STEEL are associated (or correlated) with ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of BLUESCOPE STEEL i.e., BLUESCOPE STEEL and ANTA Sports go up and down completely randomly.
Pair Corralation between BLUESCOPE STEEL and ANTA Sports
Assuming the 90 days trading horizon BLUESCOPE STEEL is expected to generate 1.51 times more return on investment than ANTA Sports. However, BLUESCOPE STEEL is 1.51 times more volatile than ANTA Sports Products. It trades about 0.26 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.14 per unit of risk. If you would invest 1,205 in BLUESCOPE STEEL on November 29, 2024 and sell it today you would earn a total of 235.00 from holding BLUESCOPE STEEL or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BLUESCOPE STEEL vs. ANTA Sports Products
Performance |
| Timeline |
| BLUESCOPE STEEL |
| ANTA Sports Products |
BLUESCOPE STEEL and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BLUESCOPE STEEL and ANTA Sports
The main advantage of trading using opposite BLUESCOPE STEEL and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLUESCOPE STEEL position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| BLUESCOPE STEEL vs. Waste Management | BLUESCOPE STEEL vs. INTERCONT HOTELS | BLUESCOPE STEEL vs. MELIA HOTELS | BLUESCOPE STEEL vs. Brockhaus Capital Management |
| ANTA Sports vs. SALESFORCE INC CDR | ANTA Sports vs. TRADEGATE | ANTA Sports vs. Indutrade AB | ANTA Sports vs. DOCDATA |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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