Correlation Between New Momentum and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both New Momentum 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 New Momentum and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Momentum and ANTA Sports Products, you can compare the effects of market volatilities on New Momentum 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 New Momentum with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Momentum and ANTA Sports.
Diversification Opportunities for New Momentum and ANTA Sports
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between New and ANTA is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding New Momentum 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 New Momentum 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 New Momentum 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 New Momentum i.e., New Momentum and ANTA Sports go up and down completely randomly.
Pair Corralation between New Momentum and ANTA Sports
Given the investment horizon of 90 days New Momentum is expected to generate 5.08 times more return on investment than ANTA Sports. However, New Momentum is 5.08 times more volatile than ANTA Sports Products. It trades about 0.0 of its potential returns per unit of risk. ANTA Sports Products is currently generating about -0.21 per unit of risk. If you would invest 0.06 in New Momentum on August 27, 2024 and sell it today you would lose (0.01) from holding New Momentum or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Momentum vs. ANTA Sports Products
Performance |
| Timeline |
| New Momentum |
| ANTA Sports Products |
New Momentum and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Momentum and ANTA Sports
The main advantage of trading using opposite New Momentum and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Momentum 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.| New Momentum vs. SosTravel SPA | New Momentum vs. Arma Services | New Momentum vs. Transat AT | New Momentum vs. Airbnb Inc |
| 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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