Correlation Between ANTA Sports and Altair Engineering
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Altair Engineering 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 Altair Engineering 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 Altair Engineering, you can compare the effects of market volatilities on ANTA Sports and Altair Engineering 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 Altair Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Altair Engineering.
Diversification Opportunities for ANTA Sports and Altair Engineering
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANTA and Altair is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Altair Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Engineering 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 Altair Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Engineering has no effect on the direction of ANTA Sports i.e., ANTA Sports and Altair Engineering go up and down completely randomly.
Pair Corralation between ANTA Sports and Altair Engineering
Assuming the 90 days trading horizon ANTA Sports Products is expected to generate 3.45 times more return on investment than Altair Engineering. However, ANTA Sports is 3.45 times more volatile than Altair Engineering. It trades about 0.05 of its potential returns per unit of risk. Altair Engineering is currently generating about -0.02 per unit of risk. If you would invest 985.00 in ANTA Sports Products on December 27, 2024 and sell it today you would earn a total of 56.00 from holding ANTA Sports Products or generate 5.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ANTA Sports Products vs. Altair Engineering
Performance |
Timeline |
ANTA Sports Products |
Altair Engineering |
ANTA Sports and Altair Engineering Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANTA Sports and Altair Engineering
The main advantage of trading using opposite ANTA Sports and Altair Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Altair Engineering 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 Altair Engineering will offset losses from the drop in Altair Engineering's long position.ANTA Sports vs. Haverty Furniture Companies | ANTA Sports vs. Pets at Home | ANTA Sports vs. Hisense Home Appliances | ANTA Sports vs. CITY OFFICE REIT |
Altair Engineering vs. SPECTRAL MEDICAL | Altair Engineering vs. Aya Gold Silver | Altair Engineering vs. MeVis Medical Solutions | Altair Engineering vs. Eurasia Mining Plc |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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