Correlation Between 78490FMG1 and ANTA Sports

Can any of the company-specific risk be diversified away by investing in both 78490FMG1 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 78490FMG1 and ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US78490FMG18 and ANTA Sports Products, you can compare the effects of market volatilities on 78490FMG1 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 78490FMG1 with a short position of ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of 78490FMG1 and ANTA Sports.

Diversification Opportunities for 78490FMG1 and ANTA Sports

-0.54

Correlation Coefficient

78490FMG1  ANTA Sports

Excellent diversification

The 3 months correlation between 78490FMG1 and ANTA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding US78490FMG18 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 78490FMG1 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 US78490FMG18 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 78490FMG1 i.e., 78490FMG1 and ANTA Sports go up and down completely randomly.

Pair Corralation between 78490FMG1 and ANTA Sports

Assuming the 90 days trading horizon US78490FMG18 is expected to under-perform the ANTA Sports. But the bond apears to be less risky and, when comparing its historical volatility, US78490FMG18 is 1.14 times less risky than ANTA Sports. The bond trades about -0.12 of its potential returns per unit of risk. The ANTA Sports Products is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  30,013  in ANTA Sports Products on September 28, 2024 and sell it today you would lose (3,964) from holding ANTA Sports Products or give up 13.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	43.55%
Values	Daily Returns

US78490FMG18  vs.  ANTA Sports Products

US78490FMG18

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US78490FMG18 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for US78490FMG18 investors.

ANTA Sports Products

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANTA Sports Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with 78490FMG1 and ANTA Sports

The main advantage of trading using opposite 78490FMG1 and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 78490FMG1 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 US78490FMG18 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.