Correlation Between DICKS Sporting and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both DICKS Sporting 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 DICKS Sporting and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DICKS Sporting Goods and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on DICKS Sporting 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 DICKS Sporting with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKS Sporting and ANTA SPORTS.
Diversification Opportunities for DICKS Sporting and ANTA SPORTS
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DICKS and ANTA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding DICKS Sporting Goods 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 DICKS Sporting 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 DICKS Sporting Goods 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 DICKS Sporting i.e., DICKS Sporting and ANTA SPORTS go up and down completely randomly.
Pair Corralation between DICKS Sporting and ANTA SPORTS
Assuming the 90 days horizon DICKS Sporting Goods is expected to generate 1.31 times more return on investment than ANTA SPORTS. However, DICKS Sporting is 1.31 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.05 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.25 per unit of risk. If you would invest 18,754 in DICKS Sporting Goods on August 28, 2024 and sell it today you would earn a total of 404.00 from holding DICKS Sporting Goods or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DICKS Sporting Goods vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| DICKS Sporting Goods |
| ANTA SPORTS PRODUCT |
DICKS Sporting and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKS Sporting and ANTA SPORTS
The main advantage of trading using opposite DICKS Sporting and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKS Sporting 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.| DICKS Sporting vs. Astral Foods Limited | DICKS Sporting vs. JJ SNACK FOODS | DICKS Sporting vs. Tyson Foods | DICKS Sporting vs. National Health Investors |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft | ANTA SPORTS vs. Microsoft |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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