Correlation Between Freshpet and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Freshpet 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 Freshpet and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freshpet and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Freshpet 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 Freshpet with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freshpet and ANTA SPORTS.
Diversification Opportunities for Freshpet and ANTA SPORTS
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Freshpet and ANTA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Freshpet 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 Freshpet 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 Freshpet 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 Freshpet i.e., Freshpet and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Freshpet and ANTA SPORTS
Assuming the 90 days horizon Freshpet is expected to generate 0.8 times more return on investment than ANTA SPORTS. However, Freshpet is 1.25 times less risky than ANTA SPORTS. It trades about 0.11 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.07 per unit of risk. If you would invest 8,050 in Freshpet on October 7, 2024 and sell it today you would earn a total of 6,225 from holding Freshpet or generate 77.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Freshpet vs. ANTA SPORTS PRODUCT
Performance |
Timeline |
Freshpet |
ANTA SPORTS PRODUCT |
Freshpet and ANTA SPORTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freshpet and ANTA SPORTS
The main advantage of trading using opposite Freshpet and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freshpet 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.Freshpet vs. Flowers Foods | Freshpet vs. MACOM Technology Solutions | Freshpet vs. SCOTT TECHNOLOGY | Freshpet vs. MOLSON RS BEVERAGE |
ANTA SPORTS vs. URBAN OUTFITTERS | ANTA SPORTS vs. Gol Intelligent Airlines | ANTA SPORTS vs. Mitsubishi Gas Chemical | ANTA SPORTS vs. International Consolidated Airlines |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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