Correlation Between International Consolidated and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both International Consolidated 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 International Consolidated and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Airlines and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on International Consolidated 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 International Consolidated with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and ANTA SPORTS.
Diversification Opportunities for International Consolidated and ANTA SPORTS
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and ANTA is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air 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 International Consolidated 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 International Consolidated Airlines 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 International Consolidated i.e., International Consolidated and ANTA SPORTS go up and down completely randomly.
Pair Corralation between International Consolidated and ANTA SPORTS
Assuming the 90 days horizon International Consolidated Airlines is expected to generate 0.76 times more return on investment than ANTA SPORTS. However, International Consolidated Airlines is 1.32 times less risky than ANTA SPORTS. It trades about 0.29 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.34 per unit of risk. If you would invest 338.00 in International Consolidated Airlines on October 8, 2024 and sell it today you would earn a total of 25.00 from holding International Consolidated Airlines or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Consolidated Air vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| International Consolidated |
| ANTA SPORTS PRODUCT |
International Consolidated and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and ANTA SPORTS
The main advantage of trading using opposite International Consolidated and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated 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.| International Consolidated vs. Delta Air Lines | International Consolidated vs. RYANAIR HLDGS ADR | International Consolidated vs. Ryanair Holdings plc |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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