Correlation Between ANTA Sports and Margo Caribe

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

ANTA Sports Products  vs.  Margo Caribe

 Performance 
       Timeline  
ANTA Sports Products 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ANTA Sports Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Margo Caribe 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Margo Caribe are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Margo Caribe displayed solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind ANTA Sports Products and Margo Caribe 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.
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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