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 PRODUCT and T MOBILE INCDL 00001, 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

0.06

Correlation Coefficient

ANTA SPORTS  T MOBILE

Significant diversification

The 3 months correlation between ANTA and TM5 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and T MOBILE INCDL 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE INCDL 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 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 INCDL 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 PRODUCT is expected to generate 3.42 times more return on investment than T MOBILE. However, ANTA SPORTS is 3.42 times more volatile than T MOBILE INCDL 00001. It trades about 0.1 of its potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about 0.26 per unit of risk. If you would invest  801.00  in ANTA SPORTS PRODUCT on September 12, 2024 and sell it today you would earn a total of  199.00  from holding ANTA SPORTS PRODUCT or generate 24.84% return on investment over 90 days.

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

ANTA SPORTS PRODUCT  vs.  T MOBILE INCDL 00001

ANTA SPORTS PRODUCT

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA SPORTS PRODUCT 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 INCDL

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T MOBILE INCDL 00001 are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, T MOBILE unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 PRODUCT and T MOBILE INCDL 00001 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.