Correlation Between ANTA Sports and Easy Software

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

Diversification Opportunities for ANTA Sports and Easy Software

0.07

Correlation Coefficient

ANTA Sports  Easy Software

Significant diversification

The 3 months correlation between ANTA and Easy is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software AG 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 Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of ANTA Sports i.e., ANTA Sports and Easy Software go up and down completely randomly.

Pair Corralation between ANTA Sports and Easy Software

Assuming the 90 days trading horizon ANTA Sports Products is expected to generate 0.95 times more return on investment than Easy Software. However, ANTA Sports Products is 1.06 times less risky than Easy Software. It trades about 0.08 of its potential returns per unit of risk. Easy Software AG is currently generating about -0.02 per unit of risk. If you would invest  994.00  in ANTA Sports Products on December 20, 2024 and sell it today you would earn a total of  94.00  from holding ANTA Sports Products or generate 9.46% return on investment over 90 days.

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

ANTA Sports Products  vs.  Easy Software AG

ANTA Sports Products

Risk-Adjusted Performance

OK

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 rather uncertain basic indicators, ANTA Sports may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Easy Software AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Easy Software AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Easy Software is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ANTA Sports and Easy Software

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

The idea behind ANTA Sports Products and Easy Software AG 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.