Correlation Between Monster Beverage and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Monster Beverage 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 Monster Beverage and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monster Beverage Corp and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Monster Beverage 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 Monster Beverage with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and ANTA SPORTS.
Diversification Opportunities for Monster Beverage and ANTA SPORTS
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Monster and ANTA is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp 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 Monster Beverage 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 Monster Beverage Corp 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 Monster Beverage i.e., Monster Beverage and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Monster Beverage and ANTA SPORTS
Assuming the 90 days trading horizon Monster Beverage Corp is expected to generate 0.91 times more return on investment than ANTA SPORTS. However, Monster Beverage Corp is 1.09 times less risky than ANTA SPORTS. It trades about 0.17 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.22 per unit of risk. If you would invest 4,844 in Monster Beverage Corp on August 30, 2024 and sell it today you would earn a total of 376.00 from holding Monster Beverage Corp or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monster Beverage Corp vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Monster Beverage Corp |
| ANTA SPORTS PRODUCT |
Monster Beverage and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and ANTA SPORTS
The main advantage of trading using opposite Monster Beverage and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage 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.| Monster Beverage vs. Apple Inc | Monster Beverage vs. Apple Inc | Monster Beverage vs. Superior Plus Corp | Monster Beverage vs. SIVERS SEMICONDUCTORS AB |
| ANTA SPORTS vs. InPlay Oil Corp | ANTA SPORTS vs. Harmony Gold Mining | ANTA SPORTS vs. Playa Hotels Resorts | ANTA SPORTS vs. Norwegian Air Shuttle |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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