Correlation Between Antelope Enterprise and Bilfinger

Can any of the company-specific risk be diversified away by investing in both Antelope Enterprise and Bilfinger 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 Bilfinger 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 Bilfinger SE ADR, you can compare the effects of market volatilities on Antelope Enterprise and Bilfinger 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 Bilfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antelope Enterprise and Bilfinger.

Diversification Opportunities for Antelope Enterprise and Bilfinger

-0.17

Correlation Coefficient

Antelope Enterprise  Bilfinger

Good diversification

The 3 months correlation between Antelope and Bilfinger is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and Bilfinger SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilfinger SE ADR 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 Bilfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilfinger SE ADR has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and Bilfinger go up and down completely randomly.

Pair Corralation between Antelope Enterprise and Bilfinger

Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the Bilfinger. In addition to that, Antelope Enterprise is 6.49 times more volatile than Bilfinger SE ADR. It trades about -0.28 of its total potential returns per unit of risk. Bilfinger SE ADR is currently generating about -0.06 per unit of volatility. If you would invest  1,000.00  in Bilfinger SE ADR on September 3, 2024 and sell it today you would lose (58.00) from holding Bilfinger SE ADR or give up 5.8% of portfolio value over 90 days.

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

Antelope Enterprise Holdings  vs.  Bilfinger SE ADR

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 abnormal 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.

Bilfinger SE ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bilfinger SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Bilfinger is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Antelope Enterprise and Bilfinger

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

The idea behind Antelope Enterprise Holdings and Bilfinger SE ADR 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.