Correlation Between Fevertree Drinks and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Fevertree Drinks 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 Fevertree Drinks and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fevertree Drinks Plc and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Fevertree Drinks 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 Fevertree Drinks with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fevertree Drinks and ANTA SPORTS.
Diversification Opportunities for Fevertree Drinks and ANTA SPORTS
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fevertree and ANTA is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fevertree Drinks Plc 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 Fevertree Drinks 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 Fevertree Drinks Plc 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 Fevertree Drinks i.e., Fevertree Drinks and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Fevertree Drinks and ANTA SPORTS
Assuming the 90 days horizon Fevertree Drinks Plc is expected to under-perform the ANTA SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, Fevertree Drinks Plc is 1.36 times less risky than ANTA SPORTS. The stock trades about -0.06 of its potential returns per unit of risk. The ANTA SPORTS PRODUCT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 669.00 in ANTA SPORTS PRODUCT on September 12, 2024 and sell it today you would earn a total of 331.00 from holding ANTA SPORTS PRODUCT or generate 49.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fevertree Drinks Plc vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Fevertree Drinks Plc |
| ANTA SPORTS PRODUCT |
Fevertree Drinks and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fevertree Drinks and ANTA SPORTS
The main advantage of trading using opposite Fevertree Drinks and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fevertree Drinks 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.| Fevertree Drinks vs. X FAB Silicon Foundries | Fevertree Drinks vs. AIR PRODCHEMICALS | Fevertree Drinks vs. LG Display Co | Fevertree Drinks vs. Mitsubishi Gas Chemical |
| ANTA SPORTS vs. Entravision Communications | ANTA SPORTS vs. Postal Savings Bank | ANTA SPORTS vs. HEMISPHERE EGY | ANTA SPORTS vs. Computershare Limited |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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