Correlation Between Ananti and UNISEM

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

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

Diversification Opportunities for Ananti and UNISEM

0.76

Correlation Coefficient

Ananti  UNISEM

Poor diversification

The 3 months correlation between Ananti and UNISEM is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ananti Inc and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM and Ananti 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 Ananti Inc are associated (or correlated) with UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of Ananti i.e., Ananti and UNISEM go up and down completely randomly.

Pair Corralation between Ananti and UNISEM

Assuming the 90 days trading horizon Ananti is expected to generate 2.18 times less return on investment than UNISEM. But when comparing it to its historical volatility, Ananti Inc is 1.16 times less risky than UNISEM. It trades about 0.06 of its potential returns per unit of risk. UNISEM Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  576,000  in UNISEM Co on December 26, 2024 and sell it today you would earn a total of  91,000  from holding UNISEM Co or generate 15.8% return on investment over 90 days.

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

Ananti Inc  vs.  UNISEM Co

Ananti Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ananti Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ananti may actually be approaching a critical reversion point that can send shares even higher in April 2025.

UNISEM

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UNISEM Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, UNISEM sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ananti and UNISEM

The main advantage of trading using opposite Ananti and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ananti position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.

The idea behind Ananti Inc and UNISEM Co 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.