Correlation Between ANT and Oaktree (lux)

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

By analyzing existing cross correlation between ANT and Oaktree Iii , you can compare the effects of market volatilities on ANT and Oaktree (lux) 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 Oaktree (lux). Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Oaktree (lux).

Diversification Opportunities for ANT and Oaktree (lux)

-0.32

Correlation Coefficient

ANT  Oaktree (lux)

Very good diversification

The 3 months correlation between ANT and Oaktree is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Oaktree Iii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree (lux) 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 Oaktree (lux). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree (lux) has no effect on the direction of ANT i.e., ANT and Oaktree (lux) go up and down completely randomly.

Pair Corralation between ANT and Oaktree (lux)

Assuming the 90 days trading horizon ANT is expected to generate 724.05 times more return on investment than Oaktree (lux). However, ANT is 724.05 times more volatile than Oaktree Iii . It trades about 0.14 of its potential returns per unit of risk. Oaktree Iii is currently generating about 0.4 per unit of risk. If you would invest  1,048  in ANT on October 25, 2024 and sell it today you would lose (901.00) from holding ANT or give up 85.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

ANT  vs.  Oaktree Iii

ANT

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 10 (%) 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.

Oaktree (lux)

Risk-Adjusted Performance

31 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Oaktree Iii are ranked lower than 31 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Oaktree (lux) is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ANT and Oaktree (lux)

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

The idea behind ANT and Oaktree Iii 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.

Check out your portfolio center.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.