Correlation Between Red Cat and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Red Cat 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 Red Cat and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Red Cat Holdings and ANTA Sports Products, you can compare the effects of market volatilities on Red Cat 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 Red Cat with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and ANTA Sports.
Diversification Opportunities for Red Cat and ANTA Sports
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Red and ANTA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings 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 Red Cat 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 Red Cat Holdings 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 Red Cat i.e., Red Cat and ANTA Sports go up and down completely randomly.
Pair Corralation between Red Cat and ANTA Sports
Given the investment horizon of 90 days Red Cat Holdings is expected to under-perform the ANTA Sports. In addition to that, Red Cat is 4.2 times more volatile than ANTA Sports Products. It trades about -0.02 of its total potential returns per unit of risk. ANTA Sports Products is currently generating about 0.23 per unit of volatility. If you would invest 24,238 in ANTA Sports Products on November 9, 2024 and sell it today you would earn a total of 2,292 from holding ANTA Sports Products or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Cat Holdings vs. ANTA Sports Products
Performance |
| Timeline |
| Red Cat Holdings |
| ANTA Sports Products |
Red Cat and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and ANTA Sports
The main advantage of trading using opposite Red Cat and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat 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.| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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