Correlation Between ANSYS and My Size

Can any of the company-specific risk be diversified away by investing in both ANSYS and My Size 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 ANSYS and My Size into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ANSYS Inc and My Size, you can compare the effects of market volatilities on ANSYS and My Size 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 ANSYS with a short position of My Size. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANSYS and My Size.

Diversification Opportunities for ANSYS and My Size

0.0

Correlation Coefficient

ANSYS  My Size

Pay attention - limited upside

The 3 months correlation between ANSYS and MYSZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANSYS Inc and My Size in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Size and ANSYS 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 ANSYS Inc are associated (or correlated) with My Size. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Size has no effect on the direction of ANSYS i.e., ANSYS and My Size go up and down completely randomly.

Pair Corralation between ANSYS and My Size

Given the investment horizon of 90 days ANSYS is expected to generate 7.29 times less return on investment than My Size. But when comparing it to its historical volatility, ANSYS Inc is 7.1 times less risky than My Size. It trades about 0.02 of its potential returns per unit of risk. My Size is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,032  in My Size on October 5, 2024 and sell it today you would lose (606.00) from holding My Size or give up 58.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ANSYS Inc  vs.  My Size

ANSYS Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANSYS Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, ANSYS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

My Size

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in My Size are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, My Size showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANSYS and My Size

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

The idea behind ANSYS Inc and My Size 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.