Correlation Between Antelope Enterprise and Johnson Controls

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

Diversification Opportunities for Antelope Enterprise and Johnson Controls

-0.21

Correlation Coefficient

Antelope Enterprise  Johnson Controls

Very good diversification

The 3 months correlation between Antelope and Johnson is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and Johnson Controls International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Controls Int 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 Johnson Controls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Controls Int has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and Johnson Controls go up and down completely randomly.

Pair Corralation between Antelope Enterprise and Johnson Controls

Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the Johnson Controls. In addition to that, Antelope Enterprise is 2.72 times more volatile than Johnson Controls International. It trades about -0.2 of its total potential returns per unit of risk. Johnson Controls International is currently generating about 0.02 per unit of volatility. If you would invest  7,879  in Johnson Controls International on December 29, 2024 and sell it today you would earn a total of  90.00  from holding Johnson Controls International or generate 1.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Antelope Enterprise Holdings  vs.  Johnson Controls International

Antelope Enterprise

Risk-Adjusted Performance

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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Johnson Controls Int

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Johnson Controls International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Johnson Controls is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Antelope Enterprise and Johnson Controls

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

The idea behind Antelope Enterprise Holdings and Johnson Controls International 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.