Correlation Between CNVISION MEDIA and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA 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 CNVISION MEDIA and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on CNVISION MEDIA 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 CNVISION MEDIA with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and ANTA SPORTS.
Diversification Opportunities for CNVISION MEDIA and ANTA SPORTS
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNVISION and ANTA is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and CNVISION MEDIA 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 CNVISION MEDIA 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 PRODUCT has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and ANTA SPORTS go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and ANTA SPORTS
Assuming the 90 days trading horizon CNVISION MEDIA is expected to under-perform the ANTA SPORTS. In addition to that, CNVISION MEDIA is 1.21 times more volatile than ANTA SPORTS PRODUCT. It trades about -0.19 of its total potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.15 per unit of volatility. If you would invest 1,022 in ANTA SPORTS PRODUCT on August 30, 2024 and sell it today you would lose (68.00) from holding ANTA SPORTS PRODUCT or give up 6.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| CNVISION MEDIA |
| ANTA SPORTS PRODUCT |
CNVISION MEDIA and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and ANTA SPORTS
The main advantage of trading using opposite CNVISION MEDIA and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA 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's long position.| CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Superior Plus Corp | CNVISION MEDIA vs. SIVERS SEMICONDUCTORS AB |
| ANTA SPORTS vs. SEALED AIR | ANTA SPORTS vs. SYSTEMAIR AB | ANTA SPORTS vs. HF SINCLAIR P | ANTA SPORTS vs. Enter Air SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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