Correlation Between Golden Heaven and ANTA Sports

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

By analyzing existing cross correlation between Golden Heaven Group and ANTA Sports Products, you can compare the effects of market volatilities on Golden Heaven 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 Golden Heaven with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Heaven and ANTA Sports.

Diversification Opportunities for Golden Heaven and ANTA Sports

-0.35

Correlation Coefficient

Golden Heaven  ANTA Sports

Very good diversification

The 3 months correlation between Golden and ANTA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Golden Heaven Group 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 Golden Heaven 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 Golden Heaven Group 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 Golden Heaven i.e., Golden Heaven and ANTA Sports go up and down completely randomly.

Pair Corralation between Golden Heaven and ANTA Sports

Given the investment horizon of 90 days Golden Heaven Group is expected to under-perform the ANTA Sports. In addition to that, Golden Heaven is 1.64 times more volatile than ANTA Sports Products. It trades about -0.2 of its total potential returns per unit of risk. ANTA Sports Products is currently generating about 0.09 per unit of volatility. If you would invest  22,128  in ANTA Sports Products on September 12, 2024 and sell it today you would earn a total of  4,580  from holding ANTA Sports Products or generate 20.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Golden Heaven Group  vs.  ANTA Sports Products

Golden Heaven Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Heaven Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ANTA Sports Products

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANTA Sports Products are ranked lower than 7 (%) 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 Golden Heaven and ANTA Sports

The main advantage of trading using opposite Golden Heaven and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Heaven 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 Golden Heaven Group 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.