Correlation Between STORE ELECTRONIC and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both STORE ELECTRONIC 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 STORE ELECTRONIC and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STORE ELECTRONIC and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on STORE ELECTRONIC 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 STORE ELECTRONIC with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of STORE ELECTRONIC and ANTA SPORTS.
Diversification Opportunities for STORE ELECTRONIC and ANTA SPORTS
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between STORE and ANTA is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding STORE ELECTRONIC and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and STORE ELECTRONIC 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 STORE ELECTRONIC 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 PRODUCT has no effect on the direction of STORE ELECTRONIC i.e., STORE ELECTRONIC and ANTA SPORTS go up and down completely randomly.
Pair Corralation between STORE ELECTRONIC and ANTA SPORTS
Assuming the 90 days trading horizon STORE ELECTRONIC is expected to generate 2.09 times more return on investment than ANTA SPORTS. However, STORE ELECTRONIC is 2.09 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.39 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.22 per unit of risk. If you would invest 13,380 in STORE ELECTRONIC on October 13, 2024 and sell it today you would earn a total of 3,800 from holding STORE ELECTRONIC or generate 28.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STORE ELECTRONIC vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| STORE ELECTRONIC |
| ANTA SPORTS PRODUCT |
STORE ELECTRONIC and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STORE ELECTRONIC and ANTA SPORTS
The main advantage of trading using opposite STORE ELECTRONIC and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STORE ELECTRONIC 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's long position.| STORE ELECTRONIC vs. SILICON LABORATOR | STORE ELECTRONIC vs. GRENKELEASING Dusseldorf | STORE ELECTRONIC vs. China BlueChemical | STORE ELECTRONIC vs. AIR PRODCHEMICALS |
| ANTA SPORTS vs. MPH Health Care | ANTA SPORTS vs. SALESFORCE INC CDR | ANTA SPORTS vs. NIGHTINGALE HEALTH EO | ANTA SPORTS vs. FEMALE HEALTH |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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