Correlation Between Tokyu Construction and ANTA Sports

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

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

Diversification Opportunities for Tokyu Construction and ANTA Sports

-0.08

Correlation Coefficient

Tokyu Construction  ANTA Sports

Good diversification

The 3 months correlation between Tokyu and ANTA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tokyu Construction Co 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 Tokyu Construction 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 Tokyu Construction Co 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 Tokyu Construction i.e., Tokyu Construction and ANTA Sports go up and down completely randomly.

Pair Corralation between Tokyu Construction and ANTA Sports

Assuming the 90 days horizon Tokyu Construction Co is expected to generate 0.54 times more return on investment than ANTA Sports. However, Tokyu Construction Co is 1.85 times less risky than ANTA Sports. It trades about 0.16 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.01 per unit of risk. If you would invest  500.00  in Tokyu Construction Co on April 24, 2025 and sell it today you would earn a total of  80.00  from holding Tokyu Construction Co or generate 16.0% return on investment over 90 days.

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

Tokyu Construction Co  vs.  ANTA Sports Products

Tokyu Construction

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tokyu Construction Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Tokyu Construction reported solid returns over the last few months and may actually be approaching a breakup point.

ANTA Sports Products

Risk-Adjusted Performance

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 rather sound basic indicators, ANTA Sports is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Tokyu Construction and ANTA Sports

The main advantage of trading using opposite Tokyu Construction and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokyu Construction 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 Tokyu Construction Co 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.