Correlation Between ANT and Berkem Group

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

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

Diversification Opportunities for ANT and Berkem Group

-0.22

Correlation Coefficient

ANT  Berkem Group

Very good diversification

The 3 months correlation between ANT and Berkem is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Berkem Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkem Group SA 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 Berkem Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkem Group SA has no effect on the direction of ANT i.e., ANT and Berkem Group go up and down completely randomly.

Pair Corralation between ANT and Berkem Group

Assuming the 90 days trading horizon ANT is expected to generate 153.82 times more return on investment than Berkem Group. However, ANT is 153.82 times more volatile than Berkem Group SA. It trades about 0.11 of its potential returns per unit of risk. Berkem Group SA is currently generating about 0.0 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	90.48%
Values	Daily Returns

ANT  vs.  Berkem Group SA

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.

Berkem Group SA

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Berkem Group SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Berkem Group is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ANT and Berkem Group

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

The idea behind ANT and Berkem Group SA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.