Correlation Between ANTA Sports and BARRICK

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

Diversification Opportunities for ANTA Sports and BARRICK

-0.08

Correlation Coefficient

ANTA Sports  BARRICK

Good diversification

The 3 months correlation between ANTA and BARRICK is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and BARRICK PD AUSTRALIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARRICK PD AUSTRALIA 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 BARRICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARRICK PD AUSTRALIA has no effect on the direction of ANTA Sports i.e., ANTA Sports and BARRICK go up and down completely randomly.

Pair Corralation between ANTA Sports and BARRICK

Assuming the 90 days horizon ANTA Sports Products is expected to generate 6.91 times more return on investment than BARRICK. However, ANTA Sports is 6.91 times more volatile than BARRICK PD AUSTRALIA. It trades about 0.08 of its potential returns per unit of risk. BARRICK PD AUSTRALIA is currently generating about -0.12 per unit of risk. If you would invest  22,274  in ANTA Sports Products on September 18, 2024 and sell it today you would earn a total of  3,677  from holding ANTA Sports Products or generate 16.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.06%
Values	Daily Returns

ANTA Sports Products  vs.  BARRICK PD AUSTRALIA

ANTA Sports Products

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, ANTA Sports showed solid returns over the last few months and may actually be approaching a breakup point.

BARRICK PD AUSTRALIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BARRICK PD AUSTRALIA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BARRICK is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ANTA Sports and BARRICK

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

The idea behind ANTA Sports Products and BARRICK PD AUSTRALIA 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.