Correlation Between ANTA Sports and Margo Caribe
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Margo Caribe 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 Margo Caribe 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 Margo Caribe, you can compare the effects of market volatilities on ANTA Sports and Margo Caribe 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 Margo Caribe. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Margo Caribe.
Diversification Opportunities for ANTA Sports and Margo Caribe
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANTA and Margo is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Margo Caribe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Margo Caribe 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 Margo Caribe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Margo Caribe has no effect on the direction of ANTA Sports i.e., ANTA Sports and Margo Caribe go up and down completely randomly.
Pair Corralation between ANTA Sports and Margo Caribe
Assuming the 90 days horizon ANTA Sports Products is expected to under-perform the Margo Caribe. But the pink sheet apears to be less risky and, when comparing its historical volatility, ANTA Sports Products is 6.94 times less risky than Margo Caribe. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Margo Caribe is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Margo Caribe on September 26, 2024 and sell it today you would lose (135.00) from holding Margo Caribe or give up 22.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ANTA Sports Products vs. Margo Caribe
Performance |
Timeline |
ANTA Sports Products |
Margo Caribe |
ANTA Sports and Margo Caribe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANTA Sports and Margo Caribe
The main advantage of trading using opposite ANTA Sports and Margo Caribe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Margo Caribe 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 Margo Caribe will offset losses from the drop in Margo Caribe's long position.ANTA Sports vs. TWC Enterprises Limited | ANTA Sports vs. ANTA Sports Products | ANTA Sports vs. Brownies Marine Group | ANTA Sports vs. Golden Heaven Group |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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