Correlation Between Antelope Enterprise and Montana Technologies

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

By analyzing existing cross correlation between Antelope Enterprise Holdings and Montana Technologies, you can compare the effects of market volatilities on Antelope Enterprise and Montana Technologies 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 Antelope Enterprise with a short position of Montana Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antelope Enterprise and Montana Technologies.

Diversification Opportunities for Antelope Enterprise and Montana Technologies

-0.71

Correlation Coefficient

Antelope Enterprise  Montana Technologies

Pay attention - limited upside

The 3 months correlation between Antelope and Montana is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and Montana Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montana Technologies and Antelope Enterprise 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 Antelope Enterprise Holdings are associated (or correlated) with Montana Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montana Technologies has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and Montana Technologies go up and down completely randomly.

Pair Corralation between Antelope Enterprise and Montana Technologies

Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the Montana Technologies. In addition to that, Antelope Enterprise is 2.02 times more volatile than Montana Technologies. It trades about -0.13 of its total potential returns per unit of risk. Montana Technologies is currently generating about 0.16 per unit of volatility. If you would invest  800.00  in Montana Technologies on September 25, 2024 and sell it today you would earn a total of  130.00  from holding Montana Technologies or generate 16.25% return on investment over 90 days.

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

Antelope Enterprise Holdings  vs.  Montana Technologies

Antelope Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antelope Enterprise Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Montana Technologies

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Montana Technologies are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Montana Technologies revealed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Antelope Enterprise and Montana Technologies

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

The idea behind Antelope Enterprise Holdings and Montana Technologies 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 CEOs Directory module to screen CEOs from public companies around the world.