Correlation Between ANTA SPORTS and Swiss Life

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

Diversification Opportunities for ANTA SPORTS and Swiss Life

-0.33

Correlation Coefficient

ANTA SPORTS  Swiss Life

Very good diversification

The 3 months correlation between ANTA and Swiss is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Swiss Life go up and down completely randomly.

Pair Corralation between ANTA SPORTS and Swiss Life

Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 1.63 times more return on investment than Swiss Life. However, ANTA SPORTS is 1.63 times more volatile than Swiss Life Holding. It trades about 0.07 of its potential returns per unit of risk. Swiss Life Holding is currently generating about 0.06 per unit of risk. If you would invest  762.00  in ANTA SPORTS PRODUCT on September 27, 2024 and sell it today you would earn a total of  220.00  from holding ANTA SPORTS PRODUCT or generate 28.87% return on investment over 90 days.

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

ANTA SPORTS PRODUCT  vs.  Swiss Life Holding

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 rather sound basic indicators, ANTA SPORTS is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Swiss Life Holding

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Swiss Life Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Swiss Life is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ANTA SPORTS and Swiss Life

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

The idea behind ANTA SPORTS PRODUCT and Swiss Life Holding 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.