Correlation Between ASPEN TECHINC and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both ASPEN TECHINC 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 ASPEN TECHINC and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPEN TECHINC DL and ANTA Sports Products, you can compare the effects of market volatilities on ASPEN TECHINC 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 ASPEN TECHINC with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN TECHINC and ANTA Sports.
Diversification Opportunities for ASPEN TECHINC and ANTA Sports
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASPEN and ANTA is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN TECHINC DL 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 ASPEN TECHINC 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 ASPEN TECHINC DL 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 ASPEN TECHINC i.e., ASPEN TECHINC and ANTA Sports go up and down completely randomly.
Pair Corralation between ASPEN TECHINC and ANTA Sports
Assuming the 90 days horizon ASPEN TECHINC DL is expected to generate 0.8 times more return on investment than ANTA Sports. However, ASPEN TECHINC DL is 1.25 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 0.02 per unit of risk. If you would invest 18,328 in ASPEN TECHINC DL on October 14, 2024 and sell it today you would earn a total of 5,872 from holding ASPEN TECHINC DL or generate 32.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASPEN TECHINC DL vs. ANTA Sports Products
Performance |
| Timeline |
| ASPEN TECHINC DL |
| ANTA Sports Products |
ASPEN TECHINC and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPEN TECHINC and ANTA Sports
The main advantage of trading using opposite ASPEN TECHINC and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPEN TECHINC 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.| ASPEN TECHINC vs. NEW MILLENNIUM IRON | ASPEN TECHINC vs. The Japan Steel | ASPEN TECHINC vs. RYU Apparel | ASPEN TECHINC vs. AM EAGLE OUTFITTERS |
| ANTA Sports vs. MHP Hotel AG | ANTA Sports vs. ASPEN TECHINC DL | ANTA Sports vs. Meli Hotels International | ANTA Sports vs. NH HOTEL GROUP |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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