Correlation Between Shenandoah Telecommunicatio and ANTA SPORTS

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

By analyzing existing cross correlation between Shenandoah Telecommunications and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenandoah Telecommunicatio and ANTA SPORTS.

Diversification Opportunities for Shenandoah Telecommunicatio and ANTA SPORTS

-0.06

Correlation Coefficient

Shenandoah Telecommunicatio  ANTA SPORTS

Good diversification

The 3 months correlation between Shenandoah and ANTA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shenandoah Telecommunications 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 Shenandoah Telecommunicatio 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 Shenandoah Telecommunications 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 Shenandoah Telecommunicatio i.e., Shenandoah Telecommunicatio and ANTA SPORTS go up and down completely randomly.

Pair Corralation between Shenandoah Telecommunicatio and ANTA SPORTS

Assuming the 90 days horizon Shenandoah Telecommunications is expected to generate 1.66 times more return on investment than ANTA SPORTS. However, Shenandoah Telecommunicatio is 1.66 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.02 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.14 per unit of risk. If you would invest  1,181  in Shenandoah Telecommunications on October 10, 2024 and sell it today you would earn a total of  9.00  from holding Shenandoah Telecommunications or generate 0.76% return on investment over 90 days.

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

Shenandoah Telecommunications  vs.  ANTA SPORTS PRODUCT

Shenandoah Telecommunicatio

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Shenandoah Telecommunications are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Shenandoah Telecommunicatio may actually be approaching a critical reversion point that can send shares even higher in February 2025.

ANTA SPORTS PRODUCT

Risk-Adjusted Performance

0 of 100

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 fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Shenandoah Telecommunicatio and ANTA SPORTS

The main advantage of trading using opposite Shenandoah Telecommunicatio and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenandoah Telecommunicatio 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 Shenandoah Telecommunications 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.