Correlation Between ANTA SPORTS and Greenland Hong

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

Diversification Opportunities for ANTA SPORTS and Greenland Hong

0.62

Correlation Coefficient

ANTA SPORTS  Greenland Hong

Poor diversification

The 3 months correlation between ANTA and Greenland is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Greenland Hong Kong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Hong Kong 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 Greenland Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Hong Kong has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Greenland Hong go up and down completely randomly.

Pair Corralation between ANTA SPORTS and Greenland Hong

Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 17.19 times less return on investment than Greenland Hong. But when comparing it to its historical volatility, ANTA SPORTS PRODUCT is 5.5 times less risky than Greenland Hong. It trades about 0.01 of its potential returns per unit of risk. Greenland Hong Kong is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  8.70  in Greenland Hong Kong on October 11, 2024 and sell it today you would lose (6.00) from holding Greenland Hong Kong or give up 68.97% of portfolio value over 90 days.

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

ANTA SPORTS PRODUCT  vs.  Greenland Hong Kong

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.

Greenland Hong Kong

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenland Hong Kong has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Greenland Hong 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 Greenland Hong

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

The idea behind ANTA SPORTS PRODUCT and Greenland Hong Kong 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..