Correlation Between Alcon AG and Anteris Technologies

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

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

Diversification Opportunities for Alcon AG and Anteris Technologies

-0.1

Correlation Coefficient

Alcon AG  Anteris Technologies

Good diversification

The 3 months correlation between Alcon and Anteris is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Alcon AG and Anteris Technologies Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Alcon AG 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 Alcon AG are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Alcon AG i.e., Alcon AG and Anteris Technologies go up and down completely randomly.

Pair Corralation between Alcon AG and Anteris Technologies

Considering the 90-day investment horizon Alcon AG is expected to generate 0.5 times more return on investment than Anteris Technologies. However, Alcon AG is 2.01 times less risky than Anteris Technologies. It trades about -0.18 of its potential returns per unit of risk. Anteris Technologies Global is currently generating about -0.19 per unit of risk. If you would invest  9,591  in Alcon AG on October 8, 2024 and sell it today you would lose (1,185) from holding Alcon AG or give up 12.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	25.81%
Values	Daily Returns

Alcon AG  vs.  Anteris Technologies Global

Alcon AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alcon AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Alcon AG and Anteris Technologies

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

The idea behind Alcon AG and Anteris Technologies Global 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.