Correlation Between GiantStep and Aniplus

Can any of the company-specific risk be diversified away by investing in both GiantStep and Aniplus 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 GiantStep and Aniplus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GiantStep Co and Aniplus, you can compare the effects of market volatilities on GiantStep and Aniplus 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 GiantStep with a short position of Aniplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of GiantStep and Aniplus.

Diversification Opportunities for GiantStep and Aniplus

0.66

Correlation Coefficient

GiantStep  Aniplus

Poor diversification

The 3 months correlation between GiantStep and Aniplus is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GiantStep Co and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus and GiantStep 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 GiantStep Co are associated (or correlated) with Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of GiantStep i.e., GiantStep and Aniplus go up and down completely randomly.

Pair Corralation between GiantStep and Aniplus

Assuming the 90 days trading horizon GiantStep Co is expected to generate 2.96 times more return on investment than Aniplus. However, GiantStep is 2.96 times more volatile than Aniplus. It trades about 0.01 of its potential returns per unit of risk. Aniplus is currently generating about 0.01 per unit of risk. If you would invest  622,000  in GiantStep Co on October 24, 2024 and sell it today you would lose (2,000) from holding GiantStep Co or give up 0.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

GiantStep Co  vs.  Aniplus

GiantStep

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GiantStep Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GiantStep is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aniplus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aniplus has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Aniplus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with GiantStep and Aniplus

The main advantage of trading using opposite GiantStep and Aniplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GiantStep position performs unexpectedly, Aniplus 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 Aniplus will offset losses from the drop in Aniplus' long position.

The idea behind GiantStep Co and Aniplus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.