Correlation Between AIR PRODCHEMICALS and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both AIR PRODCHEMICALS and ANTA SPORTS 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 AIR PRODCHEMICALS and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIR PRODCHEMICALS and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on AIR PRODCHEMICALS and ANTA SPORTS 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 AIR PRODCHEMICALS with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR PRODCHEMICALS and ANTA SPORTS.
Diversification Opportunities for AIR PRODCHEMICALS and ANTA SPORTS
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AIR and ANTA is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS are associated (or correlated) with ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and ANTA SPORTS go up and down completely randomly.
Pair Corralation between AIR PRODCHEMICALS and ANTA SPORTS
Assuming the 90 days trading horizon AIR PRODCHEMICALS is expected to generate 0.36 times more return on investment than ANTA SPORTS. However, AIR PRODCHEMICALS is 2.78 times less risky than ANTA SPORTS. It trades about 0.24 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.07 per unit of risk. If you would invest 24,070 in AIR PRODCHEMICALS on September 8, 2024 and sell it today you would earn a total of 6,420 from holding AIR PRODCHEMICALS or generate 26.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AIR PRODCHEMICALS vs. ANTA SPORTS PRODUCT
Performance |
Timeline |
AIR PRODCHEMICALS |
ANTA SPORTS PRODUCT |
AIR PRODCHEMICALS and ANTA SPORTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AIR PRODCHEMICALS and ANTA SPORTS
The main advantage of trading using opposite AIR PRODCHEMICALS and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR PRODCHEMICALS position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.AIR PRODCHEMICALS vs. Iridium Communications | AIR PRODCHEMICALS vs. FANDIFI TECHNOLOGY P | AIR PRODCHEMICALS vs. MAVEN WIRELESS SWEDEN | AIR PRODCHEMICALS vs. Micron Technology |
ANTA SPORTS vs. Information Services International Dentsu | ANTA SPORTS vs. Automatic Data Processing | ANTA SPORTS vs. Playa Hotels Resorts | ANTA SPORTS vs. Fidelity National Information |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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