Correlation Between URBAN OUTFITTERS and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both URBAN OUTFITTERS 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 URBAN OUTFITTERS and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between URBAN OUTFITTERS and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on URBAN OUTFITTERS 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 URBAN OUTFITTERS with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of URBAN OUTFITTERS and ANTA SPORTS.
Diversification Opportunities for URBAN OUTFITTERS and ANTA SPORTS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between URBAN and ANTA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS i.e., URBAN OUTFITTERS and ANTA SPORTS go up and down completely randomly.
Pair Corralation between URBAN OUTFITTERS and ANTA SPORTS
Assuming the 90 days trading horizon URBAN OUTFITTERS is expected to generate 0.79 times more return on investment than ANTA SPORTS. However, URBAN OUTFITTERS is 1.26 times less risky than ANTA SPORTS. It trades about 0.62 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.34 per unit of risk. If you would invest 4,720 in URBAN OUTFITTERS on October 9, 2024 and sell it today you would earn a total of 830.00 from holding URBAN OUTFITTERS or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
URBAN OUTFITTERS vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| URBAN OUTFITTERS |
| ANTA SPORTS PRODUCT |
URBAN OUTFITTERS and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URBAN OUTFITTERS and ANTA SPORTS
The main advantage of trading using opposite URBAN OUTFITTERS and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URBAN OUTFITTERS 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.| URBAN OUTFITTERS vs. NIGHTINGALE HEALTH EO | URBAN OUTFITTERS vs. OPKO HEALTH | URBAN OUTFITTERS vs. Ryman Healthcare Limited | URBAN OUTFITTERS vs. Norwegian Air Shuttle |
| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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