Correlation Between ANT and Ava Risk

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

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

Diversification Opportunities for ANT and Ava Risk

-0.4

Correlation Coefficient

ANT  Ava Risk

Very good diversification

The 3 months correlation between ANT and Ava is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Ava Risk Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ava Risk Group 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 Ava Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ava Risk Group has no effect on the direction of ANT i.e., ANT and Ava Risk go up and down completely randomly.

Pair Corralation between ANT and Ava Risk

Assuming the 90 days trading horizon ANT is expected to generate 15.23 times more return on investment than Ava Risk. However, ANT is 15.23 times more volatile than Ava Risk Group. It trades about 0.17 of its potential returns per unit of risk. Ava Risk Group is currently generating about -0.09 per unit of risk. If you would invest  147.00  in ANT on October 26, 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	Very Weak
Accuracy	98.41%
Values	Daily Returns

ANT  vs.  Ava Risk Group

ANT

Risk-Adjusted Performance

13 of 100

OK

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.

Ava Risk Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ava Risk Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with ANT and Ava Risk

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

The idea behind ANT and Ava Risk Group 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.