Correlation Between ANTA Sports and NESNVX

Can any of the company-specific risk be diversified away by investing in both ANTA Sports and NESNVX 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 NESNVX 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 NESNVX 4125 01 OCT 27, you can compare the effects of market volatilities on ANTA Sports and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and NESNVX.

Diversification Opportunities for ANTA Sports and NESNVX

-0.26

Correlation Coefficient

ANTA Sports  NESNVX

Very good diversification

The 3 months correlation between ANTA and NESNVX is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and NESNVX 4125 01 OCT 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 4125 01 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 4125 01 has no effect on the direction of ANTA Sports i.e., ANTA Sports and NESNVX go up and down completely randomly.

Pair Corralation between ANTA Sports and NESNVX

Assuming the 90 days horizon ANTA Sports Products is expected to generate 9.56 times more return on investment than NESNVX. However, ANTA Sports is 9.56 times more volatile than NESNVX 4125 01 OCT 27. It trades about -0.02 of its potential returns per unit of risk. NESNVX 4125 01 OCT 27 is currently generating about -0.38 per unit of risk. If you would invest  25,799  in ANTA Sports Products on September 21, 2024 and sell it today you would lose (557.00) from holding ANTA Sports Products or give up 2.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	42.86%
Values	Daily Returns

ANTA Sports Products  vs.  NESNVX 4125 01 OCT 27

ANTA Sports Products

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 3 (%) 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 January 2025.

NESNVX 4125 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 4125 01 OCT 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NESNVX 4125 01 OCT 27 investors.

Pair Trading with ANTA Sports and NESNVX

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

The idea behind ANTA Sports Products and NESNVX 4125 01 OCT 27 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..