Correlation Between Hongkong Land and ANTA SPORTS

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Can any of the company-specific risk be diversified away by investing in both Hongkong Land and ANTA SPORTS 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 Hongkong Land and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hongkong Land Holdings and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Hongkong Land and ANTA SPORTS 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 Hongkong Land with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongkong Land and ANTA SPORTS.

Diversification Opportunities for Hongkong Land and ANTA SPORTS

HongkongANTADiversified AwayHongkongANTADiversified Away100%
-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between Hongkong and ANTA is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hongkong Land Holdings and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and Hongkong Land 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 Hongkong Land Holdings are associated (or correlated) with ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Hongkong Land i.e., Hongkong Land and ANTA SPORTS go up and down completely randomly.

Pair Corralation between Hongkong Land and ANTA SPORTS

Assuming the 90 days horizon Hongkong Land Holdings is expected to generate 1.19 times more return on investment than ANTA SPORTS. However, Hongkong Land is 1.19 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.08 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.01 per unit of risk. If you would invest  360.00  in Hongkong Land Holdings on October 20, 2024 and sell it today you would earn a total of  46.00  from holding Hongkong Land Holdings or generate 12.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Hongkong Land Holdings  vs.  ANTA SPORTS PRODUCT

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510152025
JavaScript chart by amCharts 3.21.15HLH AS7
       Timeline  
Hongkong Land Holdings 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Hongkong Land Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hongkong Land reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3.63.73.83.944.14.24.34.44.5
ANTA SPORTS PRODUCT 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan9.29.49.69.81010.210.410.6

Hongkong Land and ANTA SPORTS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.65-6.48-4.31-2.14-0.022.154.426.698.9611.23 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15HLH AS7
       Returns  

Pair Trading with Hongkong Land and ANTA SPORTS

The main advantage of trading using opposite Hongkong Land and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongkong Land position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.
The idea behind Hongkong Land Holdings and ANTA SPORTS PRODUCT 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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