Correlation Between Antelope Enterprise and Limbach Holdings

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

Diversification Opportunities for Antelope Enterprise and Limbach Holdings

-0.8

Correlation Coefficient

Antelope Enterprise  Limbach Holdings

Pay attention - limited upside

The 3 months correlation between Antelope and Limbach is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and Limbach Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limbach Holdings 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 Limbach Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limbach Holdings has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and Limbach Holdings go up and down completely randomly.

Pair Corralation between Antelope Enterprise and Limbach Holdings

Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the Limbach Holdings. In addition to that, Antelope Enterprise is 2.63 times more volatile than Limbach Holdings. It trades about -0.28 of its total potential returns per unit of risk. Limbach Holdings is currently generating about 0.23 per unit of volatility. If you would invest  6,036  in Limbach Holdings on September 2, 2024 and sell it today you would earn a total of  3,913  from holding Limbach Holdings or generate 64.83% return on investment over 90 days.

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

Antelope Enterprise Holdings  vs.  Limbach Holdings

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.

Limbach Holdings

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Limbach Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile primary indicators, Limbach Holdings sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Antelope Enterprise and Limbach Holdings

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

The idea behind Antelope Enterprise Holdings and Limbach Holdings 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.