Correlation Between Geratherm Medical and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Geratherm Medical 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 Geratherm Medical and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geratherm Medical AG and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Geratherm Medical 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 Geratherm Medical with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geratherm Medical and ANTA SPORTS.
Diversification Opportunities for Geratherm Medical and ANTA SPORTS
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Geratherm and ANTA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Geratherm Medical AG 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 Geratherm Medical 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 Geratherm Medical AG 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 Geratherm Medical i.e., Geratherm Medical and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Geratherm Medical and ANTA SPORTS
Assuming the 90 days trading horizon Geratherm Medical AG is expected to generate 4.26 times more return on investment than ANTA SPORTS. However, Geratherm Medical is 4.26 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.29 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.17 per unit of risk. If you would invest 326.00 in Geratherm Medical AG on August 31, 2024 and sell it today you would earn a total of 204.00 from holding Geratherm Medical AG or generate 62.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geratherm Medical AG vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Geratherm Medical |
| ANTA SPORTS PRODUCT |
Geratherm Medical and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geratherm Medical and ANTA SPORTS
The main advantage of trading using opposite Geratherm Medical and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geratherm Medical 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.| Geratherm Medical vs. Stryker | Geratherm Medical vs. Align Technology | Geratherm Medical vs. Insulet | Geratherm Medical vs. Superior Plus Corp |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |