Correlation Between ANT and Adroit Infotech

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

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

Diversification Opportunities for ANT and Adroit Infotech

-0.26

Correlation Coefficient

ANT  Adroit Infotech

Very good diversification

The 3 months correlation between ANT and Adroit is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Adroit Infotech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adroit Infotech 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 Adroit Infotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adroit Infotech has no effect on the direction of ANT i.e., ANT and Adroit Infotech go up and down completely randomly.

Pair Corralation between ANT and Adroit Infotech

Assuming the 90 days trading horizon ANT is expected to generate 30.67 times more return on investment than Adroit Infotech. However, ANT is 30.67 times more volatile than Adroit Infotech Limited. It trades about 0.21 of its potential returns per unit of risk. Adroit Infotech Limited is currently generating about 0.01 per unit of risk. If you would invest  147.00  in ANT on October 10, 2024 and sell it today you would earn a total of  0.00  from holding ANT or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

ANT  vs.  Adroit Infotech Limited

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.

Adroit Infotech

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Adroit Infotech Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Adroit Infotech is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with ANT and Adroit Infotech

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

The idea behind ANT and Adroit Infotech Limited 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.