Correlation Between ANT and Global X

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

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

Diversification Opportunities for ANT and Global X

0.5

Correlation Coefficient

ANT  Global X

Very weak diversification

The 3 months correlation between ANT and Global is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Global X FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X FTSE 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X FTSE has no effect on the direction of ANT i.e., ANT and Global X go up and down completely randomly.

Pair Corralation between ANT and Global X

Assuming the 90 days trading horizon ANT is expected to generate 67.65 times more return on investment than Global X. However, ANT is 67.65 times more volatile than Global X FTSE. It trades about 0.1 of its potential returns per unit of risk. Global X FTSE is currently generating about 0.03 per unit of risk. If you would invest  307.00  in ANT on October 26, 2024 and sell it today you would lose (160.00) from holding ANT or give up 52.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	60.32%
Values	Daily Returns

ANT  vs.  Global X FTSE

ANT

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 13 (%) 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.

Global X FTSE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global X FTSE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Global X is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ANT and Global X

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

The idea behind ANT and Global X FTSE 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.