Correlation Between ANTA Sports and SHIMANO INC
Can any of the company-specific risk be diversified away by investing in both ANTA Sports and SHIMANO INC 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 SHIMANO INC 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 SHIMANO INC UNSPADR10, you can compare the effects of market volatilities on ANTA Sports and SHIMANO INC 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 SHIMANO INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and SHIMANO INC.
Diversification Opportunities for ANTA Sports and SHIMANO INC
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANTA and SHIMANO is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and SHIMANO INC UNSPADR10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIMANO INC UNSPADR10 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 SHIMANO INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIMANO INC UNSPADR10 has no effect on the direction of ANTA Sports i.e., ANTA Sports and SHIMANO INC go up and down completely randomly.
Pair Corralation between ANTA Sports and SHIMANO INC
Assuming the 90 days horizon ANTA Sports Products is expected to generate 1.09 times more return on investment than SHIMANO INC. However, ANTA Sports is 1.09 times more volatile than SHIMANO INC UNSPADR10. It trades about 0.0 of its potential returns per unit of risk. SHIMANO INC UNSPADR10 is currently generating about -0.12 per unit of risk. If you would invest 1,020 in ANTA Sports Products on September 26, 2024 and sell it today you would lose (40.00) from holding ANTA Sports Products or give up 3.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ANTA Sports Products vs. SHIMANO INC UNSPADR10
Performance |
Timeline |
ANTA Sports Products |
SHIMANO INC UNSPADR10 |
ANTA Sports and SHIMANO INC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANTA Sports and SHIMANO INC
The main advantage of trading using opposite ANTA Sports and SHIMANO INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA Sports position performs unexpectedly, SHIMANO INC 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 SHIMANO INC will offset losses from the drop in SHIMANO INC's long position.ANTA Sports vs. Booking Holdings | ANTA Sports vs. Li Ning Company | ANTA Sports vs. Expedia Group | 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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