Correlation Between Emerson Radio and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Emerson Radio 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 Emerson Radio and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerson Radio and ANTA Sports Products, you can compare the effects of market volatilities on Emerson Radio 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 Emerson Radio with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerson Radio and ANTA Sports.
Diversification Opportunities for Emerson Radio and ANTA Sports
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emerson and ANTA is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Radio 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 Emerson Radio 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 Emerson Radio 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 Emerson Radio i.e., Emerson Radio and ANTA Sports go up and down completely randomly.
Pair Corralation between Emerson Radio and ANTA Sports
Considering the 90-day investment horizon Emerson Radio is expected to under-perform the ANTA Sports. In addition to that, Emerson Radio is 1.01 times more volatile than ANTA Sports Products. It trades about -0.23 of its total potential returns per unit of risk. ANTA Sports Products is currently generating about -0.06 per unit of volatility. If you would invest 28,086 in ANTA Sports Products on September 12, 2024 and sell it today you would lose (1,378) from holding ANTA Sports Products or give up 4.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerson Radio vs. ANTA Sports Products
Performance |
| Timeline |
| Emerson Radio |
| ANTA Sports Products |
Emerson Radio and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerson Radio and ANTA Sports
The main advantage of trading using opposite Emerson Radio and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Radio 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.| Emerson Radio vs. VOXX International | Emerson Radio vs. LG Display Co | Emerson Radio vs. Turtle Beach Corp | Emerson Radio vs. Koss Corporation |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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