Correlation Between Oriental Land and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Oriental Land 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 Oriental Land and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Land Co and ANTA Sports Products, you can compare the effects of market volatilities on Oriental Land 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 Oriental Land with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Land and ANTA Sports.
Diversification Opportunities for Oriental Land and ANTA Sports
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oriental and ANTA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Land Co 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 Oriental Land 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 Oriental Land Co 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 Oriental Land i.e., Oriental Land and ANTA Sports go up and down completely randomly.
Pair Corralation between Oriental Land and ANTA Sports
Assuming the 90 days horizon Oriental Land Co is expected to generate 41.98 times more return on investment than ANTA Sports. However, Oriental Land is 41.98 times more volatile than ANTA Sports Products. It trades about 0.13 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.0 per unit of risk. If you would invest 16,573 in Oriental Land Co on November 8, 2024 and sell it today you would lose (14,452) from holding Oriental Land Co or give up 87.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 70.59% |
| Values | Daily Returns |
Oriental Land Co vs. ANTA Sports Products
Performance |
| Timeline |
| Oriental Land |
| ANTA Sports Products |
Oriental Land and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Land and ANTA Sports
The main advantage of trading using opposite Oriental Land and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Land 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.| Oriental Land vs. Hasbro Inc | Oriental Land vs. Oriental Land Co | Oriental Land vs. Shin Etsu Chemical Co | Oriental Land vs. KDDI Corp |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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