Correlation Between ANTA Sports and CTS
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and CTS 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 ANTA Sports and CTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA Sports Products and CTS Corporation, you can compare the effects of market volatilities on ANTA Sports and CTS 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 ANTA Sports with a short position of CTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and CTS.
Diversification Opportunities for ANTA Sports and CTS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and CTS is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and CTS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Corporation and ANTA Sports 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 ANTA Sports Products are associated (or correlated) with CTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Corporation has no effect on the direction of ANTA Sports i.e., ANTA Sports and CTS go up and down completely randomly.
Pair Corralation between ANTA Sports and CTS
Assuming the 90 days horizon ANTA Sports Products is expected to generate 2.0 times more return on investment than CTS. However, ANTA Sports is 2.0 times more volatile than CTS Corporation. It trades about 0.09 of its potential returns per unit of risk. CTS Corporation is currently generating about -0.17 per unit of risk. If you would invest 24,750 in ANTA Sports Products on September 24, 2024 and sell it today you would earn a total of 1,210 from holding ANTA Sports Products or generate 4.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ANTA Sports Products vs. CTS Corp.
Performance |
Timeline |
ANTA Sports Products |
CTS Corporation |
ANTA Sports and CTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANTA Sports and CTS
The main advantage of trading using opposite ANTA Sports and CTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, CTS 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 CTS will offset losses from the drop in CTS's long position.ANTA Sports vs. Shimano Inc ADR | ANTA Sports vs. Hasbro Inc | ANTA Sports vs. YETI Holdings | ANTA Sports vs. Shimano |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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