Correlation Between Transport International and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Transport International 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 Transport International and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transport International Holdings and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Transport International 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 Transport International with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transport International and ANTA SPORTS.
Diversification Opportunities for Transport International and ANTA SPORTS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Transport and ANTA is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Transport International Holdin 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 Transport International 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 Transport International Holdings 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 Transport International i.e., Transport International and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Transport International and ANTA SPORTS
Assuming the 90 days horizon Transport International Holdings is expected to under-perform the ANTA SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, Transport International Holdings is 1.88 times less risky than ANTA SPORTS. The stock trades about -0.02 of its potential returns per unit of risk. The ANTA SPORTS PRODUCT is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 880.00 in ANTA SPORTS PRODUCT on August 25, 2024 and sell it today you would earn a total of 72.00 from holding ANTA SPORTS PRODUCT or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transport International Holdin vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Transport International |
| ANTA SPORTS PRODUCT |
Transport International and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transport International and ANTA SPORTS
The main advantage of trading using opposite Transport International and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transport International 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.| Transport International vs. CRRC Limited | Transport International vs. Central Japan Railway | Transport International vs. Westinghouse Air Brake | Transport International vs. Superior Plus Corp |
| ANTA SPORTS vs. ALTAIR RES INC | ANTA SPORTS vs. Alaska Air Group | ANTA SPORTS vs. Ryanair Holdings plc | ANTA SPORTS vs. Westinghouse Air Brake |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |