Correlation Between RELIANCE STEEL and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both RELIANCE STEEL 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 RELIANCE STEEL and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RELIANCE STEEL AL and ANTA Sports Products, you can compare the effects of market volatilities on RELIANCE STEEL 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 RELIANCE STEEL with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of RELIANCE STEEL and ANTA Sports.
Diversification Opportunities for RELIANCE STEEL and ANTA Sports
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between RELIANCE and ANTA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding RELIANCE STEEL AL 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 RELIANCE STEEL 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 RELIANCE STEEL AL 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 RELIANCE STEEL i.e., RELIANCE STEEL and ANTA Sports go up and down completely randomly.
Pair Corralation between RELIANCE STEEL and ANTA Sports
Assuming the 90 days trading horizon RELIANCE STEEL is expected to generate 1.59 times less return on investment than ANTA Sports. But when comparing it to its historical volatility, RELIANCE STEEL AL is 1.85 times less risky than ANTA Sports. It trades about 0.04 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 854.00 in ANTA Sports Products on December 27, 2024 and sell it today you would earn a total of 236.00 from holding ANTA Sports Products or generate 27.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
RELIANCE STEEL AL vs. ANTA Sports Products
Performance |
| Timeline |
| RELIANCE STEEL AL |
| ANTA Sports Products |
RELIANCE STEEL and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RELIANCE STEEL and ANTA Sports
The main advantage of trading using opposite RELIANCE STEEL and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RELIANCE STEEL 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.| RELIANCE STEEL vs. Apple Inc | RELIANCE STEEL vs. Apple Inc | RELIANCE STEEL vs. Apple Inc | RELIANCE STEEL vs. Apple Inc |
| ANTA Sports vs. Haverty Furniture Companies | ANTA Sports vs. Pets at Home | ANTA Sports vs. Hisense Home Appliances | ANTA Sports vs. CITY OFFICE REIT |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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