Correlation Between Helport AI and ANTA Sports

Can any of the company-specific risk be diversified away by investing in both Helport AI 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 Helport AI and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Helport AI Limited and ANTA Sports Products, you can compare the effects of market volatilities on Helport AI 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 Helport AI with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helport AI and ANTA Sports.

Diversification Opportunities for Helport AI and ANTA Sports

0.1

Correlation Coefficient

Helport AI  ANTA Sports

Average diversification

The 3 months correlation between Helport and ANTA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Helport AI Limited and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products and Helport AI 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 Helport AI Limited 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 Products has no effect on the direction of Helport AI i.e., Helport AI and ANTA Sports go up and down completely randomly.

Pair Corralation between Helport AI and ANTA Sports

Given the investment horizon of 90 days Helport AI Limited is expected to under-perform the ANTA Sports. In addition to that, Helport AI is 1.7 times more volatile than ANTA Sports Products. It trades about -0.08 of its total potential returns per unit of risk. ANTA Sports Products is currently generating about 0.08 per unit of volatility. If you would invest  26,077  in ANTA Sports Products on December 26, 2024 and sell it today you would earn a total of  2,412  from holding ANTA Sports Products or generate 9.25% return on investment over 90 days.

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

Helport AI Limited  vs.  ANTA Sports Products

Helport AI Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Helport AI Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

ANTA Sports Products

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, ANTA Sports may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Helport AI and ANTA Sports

The main advantage of trading using opposite Helport AI and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helport AI 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' long position.

The idea behind Helport AI Limited and ANTA Sports Products 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.