Correlation Between Life Time and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Life Time 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 Life Time and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and ANTA Sports Products, you can compare the effects of market volatilities on Life Time 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 Life Time with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and ANTA Sports.
Diversification Opportunities for Life Time and ANTA Sports
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Life and ANTA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products and Life Time 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 Life Time Group 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 Products has no effect on the direction of Life Time i.e., Life Time and ANTA Sports go up and down completely randomly.
Pair Corralation between Life Time and ANTA Sports
Considering the 90-day investment horizon Life Time Group is expected to generate 0.66 times more return on investment than ANTA Sports. However, Life Time Group is 1.52 times less risky than ANTA Sports. It trades about 0.14 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.0 per unit of risk. If you would invest 1,727 in Life Time Group on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Life Time Group or generate 40.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Time Group vs. ANTA Sports Products
Performance |
| Timeline |
| Life Time Group |
| ANTA Sports Products |
Life Time and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and ANTA Sports
The main advantage of trading using opposite Life Time and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time 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' long position.| Life Time vs. The Wendys Co | Life Time vs. Shake Shack | Life Time vs. Papa Johns International | Life Time vs. Darden Restaurants |
| ANTA Sports vs. TWC Enterprises Limited | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Brownies Marine Group | ANTA Sports vs. Golden Heaven Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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