Correlation Between ANTA SPORTS and Gelsenwasser

Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and Gelsenwasser 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 Gelsenwasser 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 Gelsenwasser AG, you can compare the effects of market volatilities on ANTA SPORTS and Gelsenwasser 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 Gelsenwasser. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Gelsenwasser.

Diversification Opportunities for ANTA SPORTS and Gelsenwasser

-0.38

Correlation Coefficient

ANTA SPORTS  Gelsenwasser

Very good diversification

The 3 months correlation between ANTA and Gelsenwasser is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Gelsenwasser AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelsenwasser AG 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 Gelsenwasser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelsenwasser AG has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Gelsenwasser go up and down completely randomly.

Pair Corralation between ANTA SPORTS and Gelsenwasser

If you would invest  880.00  in ANTA SPORTS PRODUCT on September 5, 2024 and sell it today you would earn a total of  63.00  from holding ANTA SPORTS PRODUCT or generate 7.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.78%
Values	Daily Returns

ANTA SPORTS PRODUCT  vs.  Gelsenwasser AG

ANTA SPORTS PRODUCT

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA SPORTS PRODUCT are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ANTA SPORTS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Gelsenwasser AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gelsenwasser AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with ANTA SPORTS and Gelsenwasser

The main advantage of trading using opposite ANTA SPORTS and Gelsenwasser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, Gelsenwasser 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 Gelsenwasser will offset losses from the drop in Gelsenwasser's long position.

The idea behind ANTA SPORTS PRODUCT and Gelsenwasser AG 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.