Correlation Between ANTA Sports and Summa Silver
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and Summa Silver 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 ANTA Sports and Summa Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA Sports Products and Summa Silver Corp, you can compare the effects of market volatilities on ANTA Sports and Summa Silver 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 ANTA Sports with a short position of Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and Summa Silver.
Diversification Opportunities for ANTA Sports and Summa Silver
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANTA and Summa is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver Corp and ANTA Sports 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 ANTA Sports Products are associated (or correlated) with Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of ANTA Sports i.e., ANTA Sports and Summa Silver go up and down completely randomly.
Pair Corralation between ANTA Sports and Summa Silver
Assuming the 90 days horizon ANTA Sports Products is expected to generate 0.95 times more return on investment than Summa Silver. However, ANTA Sports Products is 1.05 times less risky than Summa Silver. It trades about 0.04 of its potential returns per unit of risk. Summa Silver Corp is currently generating about -0.15 per unit of risk. If you would invest 24,710 in ANTA Sports Products on September 25, 2024 and sell it today you would earn a total of 1,044 from holding ANTA Sports Products or generate 4.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ANTA Sports Products vs. Summa Silver Corp
Performance |
Timeline |
ANTA Sports Products |
Summa Silver Corp |
ANTA Sports and Summa Silver Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANTA Sports and Summa Silver
The main advantage of trading using opposite ANTA Sports and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, Summa Silver 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 Summa Silver will offset losses from the drop in Summa Silver's long position.ANTA Sports vs. Shimano Inc ADR | ANTA Sports vs. Hasbro Inc | ANTA Sports vs. YETI Holdings | ANTA Sports vs. Shimano |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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