Correlation Between ANT and Alltek Technology

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

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

Diversification Opportunities for ANT and Alltek Technology

0.29

Correlation Coefficient

ANT  Alltek Technology

Modest diversification

The 3 months correlation between ANT and Alltek is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Alltek Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alltek Technology Corp 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 Alltek Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alltek Technology Corp has no effect on the direction of ANT i.e., ANT and Alltek Technology go up and down completely randomly.

Pair Corralation between ANT and Alltek Technology

Assuming the 90 days trading horizon ANT is expected to generate 13.91 times more return on investment than Alltek Technology. However, ANT is 13.91 times more volatile than Alltek Technology Corp. It trades about 0.06 of its potential returns per unit of risk. Alltek Technology Corp is currently generating about -0.29 per unit of risk. If you would invest  145.00  in ANT on October 9, 2024 and sell it today you would earn a total of  2.00  from holding ANT or generate 1.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ANT  vs.  Alltek Technology Corp

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.

Alltek Technology Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alltek Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with ANT and Alltek Technology

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

The idea behind ANT and Alltek Technology Corp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.