Correlation Between MagnaChip Semiconductor and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both MagnaChip Semiconductor 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 MagnaChip Semiconductor and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MagnaChip Semiconductor Corp and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on MagnaChip Semiconductor 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 MagnaChip Semiconductor with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and ANTA SPORTS.
Diversification Opportunities for MagnaChip Semiconductor and ANTA SPORTS
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MagnaChip and ANTA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor Corp 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor Corp 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 MagnaChip Semiconductor i.e., MagnaChip Semiconductor and ANTA SPORTS go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and ANTA SPORTS
Assuming the 90 days trading horizon MagnaChip Semiconductor Corp is expected to under-perform the ANTA SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, MagnaChip Semiconductor Corp is 1.16 times less risky than ANTA SPORTS. The stock trades about -0.06 of its potential returns per unit of risk. The ANTA SPORTS PRODUCT is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 875.00 in ANTA SPORTS PRODUCT on October 26, 2024 and sell it today you would earn a total of 119.00 from holding ANTA SPORTS PRODUCT or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MagnaChip Semiconductor Corp vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| MagnaChip Semiconductor |
| ANTA SPORTS PRODUCT |
MagnaChip Semiconductor and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and ANTA SPORTS
The main advantage of trading using opposite MagnaChip Semiconductor and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor 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.| MagnaChip Semiconductor vs. JAPAN AIRLINES | MagnaChip Semiconductor vs. CHINA SOUTHN AIR H | MagnaChip Semiconductor vs. Ryanair Holdings plc | MagnaChip Semiconductor vs. FORWARD AIR P |
| ANTA SPORTS vs. Gaming and Leisure | ANTA SPORTS vs. STRAYER EDUCATION | ANTA SPORTS vs. PLAYSTUDIOS A DL 0001 | ANTA SPORTS vs. Adtalem Global Education |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |