Correlation Between American States and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both American States 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 American States and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American States Water and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on American States 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 American States with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of American States and ANTA SPORTS.
Diversification Opportunities for American States and ANTA SPORTS
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and ANTA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding American States Water 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 American States 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 American States Water 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 American States i.e., American States and ANTA SPORTS go up and down completely randomly.
Pair Corralation between American States and ANTA SPORTS
Assuming the 90 days horizon American States Water is expected to generate 0.49 times more return on investment than ANTA SPORTS. However, American States Water is 2.03 times less risky than ANTA SPORTS. It trades about 0.17 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.09 per unit of risk. If you would invest 7,282 in American States Water on August 30, 2024 and sell it today you would earn a total of 743.00 from holding American States Water or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American States Water vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| American States Water |
| ANTA SPORTS PRODUCT |
American States and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American States and ANTA SPORTS
The main advantage of trading using opposite American States and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American States 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.| American States vs. TITAN MACHINERY | American States vs. DAIRY FARM INTL | American States vs. Chongqing Machinery Electric | American States vs. Titan Machinery |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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