Correlation Between Henderson Land and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Henderson Land 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 Henderson Land and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson Land Development and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Henderson Land 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 Henderson Land with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson Land and ANTA SPORTS.
Diversification Opportunities for Henderson Land and ANTA SPORTS
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henderson and ANTA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Henderson Land Development 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 Henderson Land 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 Henderson Land Development 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 Henderson Land i.e., Henderson Land and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Henderson Land and ANTA SPORTS
Assuming the 90 days horizon Henderson Land Development is expected to generate 1.8 times more return on investment than ANTA SPORTS. However, Henderson Land is 1.8 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.08 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.03 per unit of risk. If you would invest 62.00 in Henderson Land Development on September 12, 2024 and sell it today you would earn a total of 242.00 from holding Henderson Land Development or generate 390.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henderson Land Development vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Henderson Land Devel |
| ANTA SPORTS PRODUCT |
Henderson Land and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson Land and ANTA SPORTS
The main advantage of trading using opposite Henderson Land and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson Land 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.| Henderson Land vs. Superior Plus Corp | Henderson Land vs. SIVERS SEMICONDUCTORS AB | Henderson Land vs. Reliance Steel Aluminum | Henderson Land vs. CHINA HUARONG ENERHD 50 |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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