Correlation Between ANTA Sports and Legacy Education

Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Legacy Education 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 Legacy Education 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 Legacy Education, you can compare the effects of market volatilities on ANTA Sports and Legacy Education 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 Legacy Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Legacy Education.

Diversification Opportunities for ANTA Sports and Legacy Education

-0.84

Correlation Coefficient

ANTA Sports  Legacy Education

Pay attention - limited upside

The 3 months correlation between ANTA and Legacy is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Legacy Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legacy Education 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 Legacy Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legacy Education has no effect on the direction of ANTA Sports i.e., ANTA Sports and Legacy Education go up and down completely randomly.

Pair Corralation between ANTA Sports and Legacy Education

Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Legacy Education. But the pink sheet apears to be less risky and, when comparing its historical volatility, ANTA Sports Products is 2.1 times less risky than Legacy Education. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Legacy Education is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest  508.00  in Legacy Education on August 30, 2024 and sell it today you would earn a total of  302.00  from holding Legacy Education or generate 59.45% return on investment over 90 days.

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

ANTA Sports Products  vs.  Legacy Education

ANTA Sports Products

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, ANTA Sports may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Legacy Education

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Legacy Education are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Legacy Education showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANTA Sports and Legacy Education

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

The idea behind ANTA Sports Products and Legacy Education 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.