Correlation Between Paiute Oil and ANTA Sports

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

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

Diversification Opportunities for Paiute Oil and ANTA Sports

0.0

Correlation Coefficient

Paiute Oil  ANTA Sports

Pay attention - limited upside

The 3 months correlation between Paiute and ANTA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Paiute Oil Mining 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 Paiute Oil 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 Paiute Oil Mining 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 Paiute Oil i.e., Paiute Oil and ANTA Sports go up and down completely randomly.

Pair Corralation between Paiute Oil and ANTA Sports

Assuming the 90 days horizon Paiute Oil Mining is expected to generate 50.17 times more return on investment than ANTA Sports. However, Paiute Oil is 50.17 times more volatile than ANTA Sports Products. It trades about 0.14 of its potential returns per unit of risk. ANTA Sports Products is currently generating about -0.05 per unit of risk. If you would invest  0.01  in Paiute Oil Mining on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Paiute Oil Mining or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.67%
Values	Daily Returns

Paiute Oil Mining  vs.  ANTA Sports Products

Paiute Oil Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paiute Oil Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

ANTA Sports Products

Risk-Adjusted Performance

6 of 100

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 fragile fundamental indicators, ANTA Sports showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Paiute Oil and ANTA Sports

The main advantage of trading using opposite Paiute Oil and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paiute Oil 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 Paiute Oil Mining 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.