Correlation Between HEMISPHERE EGY and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both HEMISPHERE EGY 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 HEMISPHERE EGY and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEMISPHERE EGY and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on HEMISPHERE EGY 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 HEMISPHERE EGY with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEMISPHERE EGY and ANTA SPORTS.
Diversification Opportunities for HEMISPHERE EGY and ANTA SPORTS
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HEMISPHERE and ANTA is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding HEMISPHERE EGY 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 HEMISPHERE EGY 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 HEMISPHERE EGY 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 HEMISPHERE EGY i.e., HEMISPHERE EGY and ANTA SPORTS go up and down completely randomly.
Pair Corralation between HEMISPHERE EGY and ANTA SPORTS
Assuming the 90 days trading horizon HEMISPHERE EGY is expected to generate 0.47 times more return on investment than ANTA SPORTS. However, HEMISPHERE EGY is 2.12 times less risky than ANTA SPORTS. It trades about 0.12 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.05 per unit of risk. If you would invest 71.00 in HEMISPHERE EGY on September 12, 2024 and sell it today you would earn a total of 53.00 from holding HEMISPHERE EGY or generate 74.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEMISPHERE EGY vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| HEMISPHERE EGY |
| ANTA SPORTS PRODUCT |
HEMISPHERE EGY and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEMISPHERE EGY and ANTA SPORTS
The main advantage of trading using opposite HEMISPHERE EGY and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEMISPHERE EGY 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.| HEMISPHERE EGY vs. Apple Inc | HEMISPHERE EGY vs. Apple Inc | HEMISPHERE EGY vs. Apple Inc | HEMISPHERE EGY vs. Apple Inc |
| ANTA SPORTS vs. Entravision Communications | ANTA SPORTS vs. Postal Savings Bank | ANTA SPORTS vs. HEMISPHERE EGY | ANTA SPORTS vs. Computershare 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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