Correlation Between ANTA Sports and T-MOBILE

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

Diversification Opportunities for ANTA Sports and T-MOBILE

0.67

Correlation Coefficient

ANTA Sports  T-MOBILE

Poor diversification

The 3 months correlation between ANTA and T-MOBILE is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and T MOBILE US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE US 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 T-MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE US has no effect on the direction of ANTA Sports i.e., ANTA Sports and T-MOBILE go up and down completely randomly.

Pair Corralation between ANTA Sports and T-MOBILE

Assuming the 90 days trading horizon ANTA Sports Products is expected to generate 1.21 times more return on investment than T-MOBILE. However, ANTA Sports is 1.21 times more volatile than T MOBILE US. It trades about 0.1 of its potential returns per unit of risk. T MOBILE US is currently generating about 0.09 per unit of risk. If you would invest  947.00  in ANTA Sports Products on December 2, 2024 and sell it today you would earn a total of  123.00  from holding ANTA Sports Products or generate 12.99% return on investment over 90 days.

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

ANTA Sports Products  vs.  T MOBILE US

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 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, ANTA Sports exhibited solid returns over the last few months and may actually be approaching a breakup point.

T MOBILE US

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in T MOBILE US are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, T-MOBILE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with ANTA Sports and T-MOBILE

The main advantage of trading using opposite ANTA Sports and T-MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, T-MOBILE 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 T-MOBILE will offset losses from the drop in T-MOBILE's long position.

The idea behind ANTA Sports Products and T MOBILE US 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.