Correlation Between Ramsay Health and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Ramsay Health 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 Ramsay Health and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Health Care and ANTA Sports Products, you can compare the effects of market volatilities on Ramsay Health 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 Ramsay Health with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Health and ANTA Sports.
Diversification Opportunities for Ramsay Health and ANTA Sports
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ramsay and ANTA is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Health Care 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 Ramsay Health 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 Ramsay Health Care 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 Ramsay Health i.e., Ramsay Health and ANTA Sports go up and down completely randomly.
Pair Corralation between Ramsay Health and ANTA Sports
Assuming the 90 days horizon Ramsay Health Care is expected to generate 0.68 times more return on investment than ANTA Sports. However, Ramsay Health Care is 1.47 times less risky than ANTA Sports. It trades about 0.08 of its potential returns per unit of risk. ANTA Sports Products is currently generating about -0.1 per unit of risk. If you would invest 2,360 in Ramsay Health Care on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Ramsay Health Care or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramsay Health Care vs. ANTA Sports Products
Performance |
| Timeline |
| Ramsay Health Care |
| ANTA Sports Products |
Ramsay Health and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Health and ANTA Sports
The main advantage of trading using opposite Ramsay Health and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health 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.| Ramsay Health vs. Superior Plus Corp | Ramsay Health vs. NMI Holdings | Ramsay Health vs. Origin Agritech | Ramsay Health vs. SIVERS SEMICONDUCTORS AB |
| ANTA Sports vs. InterContinental Hotels Group | ANTA Sports vs. Ramsay Health Care | ANTA Sports vs. INTERCONT HOTELS | ANTA Sports vs. Sunstone Hotel Investors |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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