Correlation Between ANTA SPORTS and WW Grainger
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and WW Grainger 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 WW Grainger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA SPORTS PRODUCT and WW Grainger, you can compare the effects of market volatilities on ANTA SPORTS and WW Grainger 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 WW Grainger. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and WW Grainger.
Diversification Opportunities for ANTA SPORTS and WW Grainger
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANTA and GWW is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and WW Grainger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WW Grainger 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 PRODUCT are associated (or correlated) with WW Grainger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WW Grainger has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and WW Grainger go up and down completely randomly.
Pair Corralation between ANTA SPORTS and WW Grainger
Assuming the 90 days trading horizon ANTA SPORTS PRODUCT is expected to generate 2.67 times more return on investment than WW Grainger. However, ANTA SPORTS is 2.67 times more volatile than WW Grainger. It trades about 0.06 of its potential returns per unit of risk. WW Grainger is currently generating about 0.12 per unit of risk. If you would invest 880.00 in ANTA SPORTS PRODUCT on September 25, 2024 and sell it today you would earn a total of 102.00 from holding ANTA SPORTS PRODUCT or generate 11.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ANTA SPORTS PRODUCT vs. WW Grainger
Performance |
Timeline |
ANTA SPORTS PRODUCT |
WW Grainger |
ANTA SPORTS and WW Grainger Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANTA SPORTS and WW Grainger
The main advantage of trading using opposite ANTA SPORTS and WW Grainger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, WW Grainger 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 WW Grainger will offset losses from the drop in WW Grainger's long position.ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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