Correlation Between WEC Energy and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both WEC Energy 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 WEC Energy and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WEC Energy Group and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on WEC Energy 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 WEC Energy with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEC Energy and ANTA SPORTS.
Diversification Opportunities for WEC Energy and ANTA SPORTS
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WEC and ANTA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding WEC Energy Group 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 WEC Energy 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 WEC Energy Group 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 WEC Energy i.e., WEC Energy and ANTA SPORTS go up and down completely randomly.
Pair Corralation between WEC Energy and ANTA SPORTS
Assuming the 90 days horizon WEC Energy Group is expected to generate 0.55 times more return on investment than ANTA SPORTS. However, WEC Energy Group is 1.8 times less risky than ANTA SPORTS. It trades about 0.06 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.01 per unit of risk. If you would invest 9,102 in WEC Energy Group on October 24, 2024 and sell it today you would earn a total of 404.00 from holding WEC Energy Group or generate 4.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
WEC Energy Group vs. ANTA SPORTS PRODUCT
Performance |
Timeline |
WEC Energy Group |
ANTA SPORTS PRODUCT |
WEC Energy and ANTA SPORTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WEC Energy and ANTA SPORTS
The main advantage of trading using opposite WEC Energy and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEC Energy 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.WEC Energy vs. ANTA SPORTS PRODUCT | WEC Energy vs. Nexstar Media Group | WEC Energy vs. GigaMedia | WEC Energy vs. CAREER EDUCATION |
ANTA SPORTS vs. FANDIFI TECHNOLOGY P | ANTA SPORTS vs. Nufarm Limited | ANTA SPORTS vs. North American Construction | ANTA SPORTS vs. Casio Computer CoLtd |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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