Correlation Between SBI Insurance and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both SBI Insurance 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 SBI Insurance and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Insurance Group and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on SBI Insurance 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 SBI Insurance with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and ANTA SPORTS.
Diversification Opportunities for SBI Insurance and ANTA SPORTS
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SBI and ANTA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group 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 SBI Insurance 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 SBI Insurance 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 PRODUCT has no effect on the direction of SBI Insurance i.e., SBI Insurance and ANTA SPORTS go up and down completely randomly.
Pair Corralation between SBI Insurance and ANTA SPORTS
Assuming the 90 days trading horizon SBI Insurance Group is expected to under-perform the ANTA SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, SBI Insurance Group is 1.58 times less risky than ANTA SPORTS. The stock trades about 0.0 of its potential returns per unit of risk. The ANTA SPORTS PRODUCT is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 698.00 in ANTA SPORTS PRODUCT on August 31, 2024 and sell it today you would earn a total of 229.00 from holding ANTA SPORTS PRODUCT or generate 32.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| SBI Insurance Group |
| ANTA SPORTS PRODUCT |
SBI Insurance and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and ANTA SPORTS
The main advantage of trading using opposite SBI Insurance and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance 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.| SBI Insurance vs. SALESFORCE INC CDR | SBI Insurance vs. Lamar Advertising | SBI Insurance vs. UET United Electronic | SBI Insurance vs. Electronic Arts |
| ANTA SPORTS vs. SIVERS SEMICONDUCTORS AB | ANTA SPORTS vs. Darden Restaurants | ANTA SPORTS vs. Reliance Steel Aluminum | ANTA SPORTS vs. Q2M Managementberatung AG |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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