Correlation Between ANT and 0P000075UP

Can any of the company-specific risk be diversified away by investing in both ANT and 0P000075UP 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 ANT and 0P000075UP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ANT and 0P000075UP, you can compare the effects of market volatilities on ANT and 0P000075UP 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 ANT with a short position of 0P000075UP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and 0P000075UP.

Diversification Opportunities for ANT and 0P000075UP

-0.36

Correlation Coefficient

ANT  0P000075UP

Very good diversification

The 3 months correlation between ANT and 0P000075UP is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ANT and 0P000075UP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 0P000075UP and ANT 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 ANT are associated (or correlated) with 0P000075UP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 0P000075UP has no effect on the direction of ANT i.e., ANT and 0P000075UP go up and down completely randomly.

Pair Corralation between ANT and 0P000075UP

Assuming the 90 days trading horizon ANT is expected to generate 16.4 times more return on investment than 0P000075UP. However, ANT is 16.4 times more volatile than 0P000075UP. It trades about 0.11 of its potential returns per unit of risk. 0P000075UP is currently generating about 0.05 per unit of risk. If you would invest  130.00  in ANT on October 11, 2024 and sell it today you would earn a total of  17.00  from holding ANT or generate 13.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.36%
Values	Daily Returns

ANT  vs.  0P000075UP

ANT

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ANT exhibited solid returns over the last few months and may actually be approaching a breakup point.

0P000075UP

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 0P000075UP are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak basic indicators, 0P000075UP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with ANT and 0P000075UP

The main advantage of trading using opposite ANT and 0P000075UP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, 0P000075UP 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 0P000075UP will offset losses from the drop in 0P000075UP's long position.

The idea behind ANT and 0P000075UP 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.