Correlation Between Brownies Marine and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Brownies Marine 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 Brownies Marine and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brownies Marine Group and ANTA Sports Products, you can compare the effects of market volatilities on Brownies Marine 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 Brownies Marine with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brownies Marine and ANTA Sports.
Diversification Opportunities for Brownies Marine and ANTA Sports
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Brownies and ANTA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Brownies Marine Group 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 Brownies Marine 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 Brownies Marine Group 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 Brownies Marine i.e., Brownies Marine and ANTA Sports go up and down completely randomly.
Pair Corralation between Brownies Marine and ANTA Sports
Given the investment horizon of 90 days Brownies Marine Group is expected to generate 8.41 times more return on investment than ANTA Sports. However, Brownies Marine is 8.41 times more volatile than ANTA Sports Products. It trades about 0.02 of its potential returns per unit of risk. ANTA Sports Products is currently generating about -0.24 per unit of risk. If you would invest 1.19 in Brownies Marine Group on August 28, 2024 and sell it today you would lose (0.39) from holding Brownies Marine Group or give up 32.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brownies Marine Group vs. ANTA Sports Products
Performance |
| Timeline |
| Brownies Marine Group |
| ANTA Sports Products |
Brownies Marine and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brownies Marine and ANTA Sports
The main advantage of trading using opposite Brownies Marine and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brownies Marine 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.| Brownies Marine vs. FitLife Brands, Common | Brownies Marine vs. HUMANA INC | Brownies Marine vs. SCOR PK | Brownies Marine vs. Aquagold International |
| ANTA Sports vs. TWC Enterprises Limited | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Brownies Marine Group | ANTA Sports vs. Golden Heaven Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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