Correlation Between Hyster-Yale Materials and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials 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 Hyster-Yale Materials and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Hyster-Yale Materials 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 Hyster-Yale Materials with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and ANTA SPORTS.
Diversification Opportunities for Hyster-Yale Materials and ANTA SPORTS
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyster-Yale and ANTA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling 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 Hyster-Yale Materials 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 Hyster Yale Materials Handling 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 Hyster-Yale Materials i.e., Hyster-Yale Materials and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and ANTA SPORTS
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 1.15 times more return on investment than ANTA SPORTS. However, Hyster-Yale Materials is 1.15 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.06 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 2,512 in Hyster Yale Materials Handling on September 3, 2024 and sell it today you would earn a total of 2,738 from holding Hyster Yale Materials Handling or generate 109.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Hyster Yale Materials |
| ANTA SPORTS PRODUCT |
Hyster-Yale Materials and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and ANTA SPORTS
The main advantage of trading using opposite Hyster-Yale Materials and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials 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.| Hyster-Yale Materials vs. Superior Plus Corp | Hyster-Yale Materials vs. NMI Holdings | Hyster-Yale Materials vs. Origin Agritech | Hyster-Yale Materials vs. SIVERS SEMICONDUCTORS AB |
| ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. JD SPORTS FASH | ANTA SPORTS vs. Columbia Sportswear | ANTA SPORTS vs. The Hanover Insurance |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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