Correlation Between Peak Resources and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Peak Resources 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 Peak Resources and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peak Resources Limited and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Peak Resources 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 Peak Resources with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peak Resources and ANTA SPORTS.
Diversification Opportunities for Peak Resources and ANTA SPORTS
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peak and ANTA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Peak Resources Limited 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 Peak Resources 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 Peak Resources Limited 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 Peak Resources i.e., Peak Resources and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Peak Resources and ANTA SPORTS
Assuming the 90 days horizon Peak Resources Limited is expected to under-perform the ANTA SPORTS. In addition to that, Peak Resources is 6.27 times more volatile than ANTA SPORTS PRODUCT. It trades about -0.08 of its total potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.09 per unit of volatility. If you would invest 989.00 in ANTA SPORTS PRODUCT on September 5, 2024 and sell it today you would lose (46.00) from holding ANTA SPORTS PRODUCT or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Peak Resources Limited vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Peak Resources |
| ANTA SPORTS PRODUCT |
Peak Resources and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peak Resources and ANTA SPORTS
The main advantage of trading using opposite Peak Resources and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peak Resources 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.| Peak Resources vs. BHP Group Limited | Peak Resources vs. Rio Tinto Group | Peak Resources vs. Glencore PLC | Peak Resources vs. ANGLO AMERICAN SPADR |
| ANTA SPORTS vs. TOTAL GABON | ANTA SPORTS vs. Walgreens Boots Alliance | ANTA SPORTS vs. Peak Resources 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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