Correlation Between NESNVX and ANTA Sports

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

By analyzing existing cross correlation between NESNVX 4125 01 OCT 27 and ANTA Sports Products, you can compare the effects of market volatilities on NESNVX 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 NESNVX with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of NESNVX and ANTA Sports.

Diversification Opportunities for NESNVX and ANTA Sports

-0.26

Correlation Coefficient

NESNVX  ANTA Sports

Very good diversification

The 3 months correlation between NESNVX and ANTA is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding NESNVX 4125 01 OCT 27 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 NESNVX 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 NESNVX 4125 01 OCT 27 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 NESNVX i.e., NESNVX and ANTA Sports go up and down completely randomly.

Pair Corralation between NESNVX and ANTA Sports

Assuming the 90 days trading horizon NESNVX 4125 01 OCT 27 is expected to generate 0.19 times more return on investment than ANTA Sports. However, NESNVX 4125 01 OCT 27 is 5.26 times less risky than ANTA Sports. It trades about 0.0 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.0 per unit of risk. If you would invest  9,851  in NESNVX 4125 01 OCT 27 on September 21, 2024 and sell it today you would lose (56.00) from holding NESNVX 4125 01 OCT 27 or give up 0.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	51.52%
Values	Daily Returns

NESNVX 4125 01 OCT 27  vs.  ANTA Sports Products

NESNVX 4125 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 4125 01 OCT 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NESNVX 4125 01 OCT 27 investors.

ANTA Sports Products

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, ANTA Sports may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with NESNVX and ANTA Sports

The main advantage of trading using opposite NESNVX and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NESNVX 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 NESNVX 4125 01 OCT 27 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.