Correlation Between ANT and HL Multi

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

By analyzing existing cross correlation between ANT and HL Multi Index Moderately, you can compare the effects of market volatilities on ANT and HL Multi 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 HL Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and HL Multi.

Diversification Opportunities for ANT and HL Multi

0.38

Correlation Coefficient

ANT  HL Multi

Weak diversification

The 3 months correlation between ANT and 0P0001RI3W is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding ANT and HL Multi Index Moderately in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HL Multi Index 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 HL Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HL Multi Index has no effect on the direction of ANT i.e., ANT and HL Multi go up and down completely randomly.

Pair Corralation between ANT and HL Multi

Assuming the 90 days trading horizon ANT is expected to generate 31.15 times more return on investment than HL Multi. However, ANT is 31.15 times more volatile than HL Multi Index Moderately. It trades about 0.07 of its potential returns per unit of risk. HL Multi Index Moderately is currently generating about -0.05 per unit of risk. If you would invest  147.00  in ANT on December 25, 2024 and sell it today you would lose (12.00) from holding ANT or give up 8.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

ANT  vs.  HL Multi Index Moderately

ANT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 5 (%) 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.

HL Multi Index

Risk-Adjusted Performance

Very Weak

Over the last 90 days HL Multi Index Moderately has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively invariable forward indicators, HL Multi is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ANT and HL Multi

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

The idea behind ANT and HL Multi Index Moderately 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.