Correlation Between Griffon and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Griffon 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 Griffon and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and ANTA Sports Products, you can compare the effects of market volatilities on Griffon 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 Griffon with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and ANTA Sports.
Diversification Opportunities for Griffon and ANTA Sports
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Griffon and ANTA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Griffon 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 Griffon 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 Griffon 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 Griffon i.e., Griffon and ANTA Sports go up and down completely randomly.
Pair Corralation between Griffon and ANTA Sports
Considering the 90-day investment horizon Griffon is expected to under-perform the ANTA Sports. In addition to that, Griffon is 1.01 times more volatile than ANTA Sports Products. It trades about -0.14 of its total potential returns per unit of risk. ANTA Sports Products is currently generating about -0.07 per unit of volatility. If you would invest 25,972 in ANTA Sports Products on October 17, 2024 and sell it today you would lose (722.00) from holding ANTA Sports Products or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Griffon vs. ANTA Sports Products
Performance |
| Timeline |
| Griffon |
| ANTA Sports Products |
Griffon and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and ANTA Sports
The main advantage of trading using opposite Griffon and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon 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.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| ANTA Sports vs. TWC Enterprises Limited | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Brownies Marine Group | ANTA Sports vs. Golden Heaven Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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