Correlation Between Dow Jones and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and ANTA Sports Products, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and ANTA Sports.
Diversification Opportunities for Dow Jones and ANTA Sports
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dow and ANTA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and ANTA Sports go up and down completely randomly.
Pair Corralation between Dow Jones and ANTA Sports
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.25 times more return on investment than ANTA Sports. However, Dow Jones Industrial is 3.98 times less risky than ANTA Sports. It trades about 0.12 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.03 per unit of risk. If you would invest 4,402,581 in Dow Jones Industrial on November 21, 2024 and sell it today you would earn a total of 53,053 from holding Dow Jones Industrial or generate 1.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 90.91% |
Values | Daily Returns |
Dow Jones Industrial vs. ANTA Sports Products
Performance |
Timeline |
Dow Jones and ANTA Sports Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
ANTA Sports Products
Pair trading matchups for ANTA Sports
Pair Trading with Dow Jones and ANTA Sports
The main advantage of trading using opposite Dow Jones and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.Dow Jones vs. Boston Beer | ||
Dow Jones vs. Tianjin Capital Environmental | ||
Dow Jones vs. Compania Cervecerias Unidas | ||
Dow Jones vs. Monster Beverage Corp |
ANTA Sports vs. X FAB Silicon Foundries | ||
ANTA Sports vs. Hitachi Construction Machinery | ||
ANTA Sports vs. Australian Agricultural | ||
ANTA Sports vs. TIANDE CHEMICAL |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |