Correlation Between 65339KCA6 and ANTA Sports

Can any of the company-specific risk be diversified away by investing in both 65339KCA6 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 65339KCA6 and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NEE 3 15 JAN 52 and ANTA Sports Products, you can compare the effects of market volatilities on 65339KCA6 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 65339KCA6 with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of 65339KCA6 and ANTA Sports.

Diversification Opportunities for 65339KCA6 and ANTA Sports

0.47

Correlation Coefficient

65339KCA6  ANTA Sports

Very weak diversification

The 3 months correlation between 65339KCA6 and ANTA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding NEE 3 15 JAN 52 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 65339KCA6 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 NEE 3 15 JAN 52 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 65339KCA6 i.e., 65339KCA6 and ANTA Sports go up and down completely randomly.

Pair Corralation between 65339KCA6 and ANTA Sports

Assuming the 90 days trading horizon 65339KCA6 is expected to generate 3.03 times less return on investment than ANTA Sports. But when comparing it to its historical volatility, NEE 3 15 JAN 52 is 2.82 times less risky than ANTA Sports. It trades about 0.02 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  25,808  in ANTA Sports Products on September 17, 2024 and sell it today you would earn a total of  143.00  from holding ANTA Sports Products or generate 0.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	76.19%
Values	Daily Returns

NEE 3 15 JAN 52  vs.  ANTA Sports Products

65339KCA6

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NEE 3 15 JAN 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak 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 NEE 3 15 JAN 52 investors.

ANTA Sports Products

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 5 (%) 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 65339KCA6 and ANTA Sports

The main advantage of trading using opposite 65339KCA6 and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 65339KCA6 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 NEE 3 15 JAN 52 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.