Correlation Between ANTA SPORTS and Arthur J

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

By analyzing existing cross correlation between ANTA SPORTS PRODUCT and Arthur J Gallagher, you can compare the effects of market volatilities on ANTA SPORTS and Arthur J 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 Arthur J. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Arthur J.

Diversification Opportunities for ANTA SPORTS and Arthur J

-0.58

Correlation Coefficient

ANTA SPORTS  Arthur J

Excellent diversification

The 3 months correlation between ANTA and Arthur is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Arthur J Gallagher in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arthur J Gallagher 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 PRODUCT are associated (or correlated) with Arthur J. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arthur J Gallagher has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Arthur J go up and down completely randomly.

Pair Corralation between ANTA SPORTS and Arthur J

Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 2.66 times less return on investment than Arthur J. In addition to that, ANTA SPORTS is 2.08 times more volatile than Arthur J Gallagher. It trades about 0.01 of its total potential returns per unit of risk. Arthur J Gallagher is currently generating about 0.07 per unit of volatility. If you would invest  17,239  in Arthur J Gallagher on October 11, 2024 and sell it today you would earn a total of  9,881  from holding Arthur J Gallagher or generate 57.32% 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 PRODUCT  vs.  Arthur J Gallagher

ANTA SPORTS PRODUCT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANTA SPORTS PRODUCT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Arthur J Gallagher

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Arthur J Gallagher are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Arthur J is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ANTA SPORTS and Arthur J

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

The idea behind ANTA SPORTS PRODUCT and Arthur J Gallagher 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.