Correlation Between Immofinanz and ANTA SPORTS

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

By analyzing existing cross correlation between Immofinanz AG and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Immofinanz 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 Immofinanz with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immofinanz and ANTA SPORTS.

Diversification Opportunities for Immofinanz and ANTA SPORTS

0.07

Correlation Coefficient

Immofinanz  ANTA SPORTS

Significant diversification

The 3 months correlation between Immofinanz and ANTA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Immofinanz AG and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and Immofinanz 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 Immofinanz AG 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 PRODUCT has no effect on the direction of Immofinanz i.e., Immofinanz and ANTA SPORTS go up and down completely randomly.

Pair Corralation between Immofinanz and ANTA SPORTS

Assuming the 90 days trading horizon Immofinanz AG is expected to under-perform the ANTA SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, Immofinanz AG is 1.68 times less risky than ANTA SPORTS. The stock trades about -0.15 of its potential returns per unit of risk. The ANTA SPORTS PRODUCT is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  1,088  in ANTA SPORTS PRODUCT on September 28, 2024 and sell it today you would lose (106.00) from holding ANTA SPORTS PRODUCT or give up 9.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Immofinanz AG  vs.  ANTA SPORTS PRODUCT

Immofinanz AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immofinanz AG 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 basic 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 PRODUCT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANTA SPORTS PRODUCT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Immofinanz and ANTA SPORTS

The main advantage of trading using opposite Immofinanz and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immofinanz 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's long position.

The idea behind Immofinanz AG and ANTA SPORTS PRODUCT 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.