Correlation Between ANT and BankInvest Hojrentelande

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

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

Diversification Opportunities for ANT and BankInvest Hojrentelande

-0.19

Correlation Coefficient

ANT  BankInvest Hojrentelande

Good diversification

The 3 months correlation between ANT and BankInvest is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ANT and BankInvest Hojrentelande in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Hojrentelande 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 BankInvest Hojrentelande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Hojrentelande has no effect on the direction of ANT i.e., ANT and BankInvest Hojrentelande go up and down completely randomly.

Pair Corralation between ANT and BankInvest Hojrentelande

Assuming the 90 days trading horizon ANT is expected to generate 63.5 times more return on investment than BankInvest Hojrentelande. However, ANT is 63.5 times more volatile than BankInvest Hojrentelande. It trades about 0.07 of its potential returns per unit of risk. BankInvest Hojrentelande is currently generating about 0.11 per unit of risk. If you would invest  147.00  in ANT on December 24, 2024 and sell it today you would lose (12.00) from holding ANT or give up 8.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

ANT  vs.  BankInvest Hojrentelande

ANT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 5 (%) 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.

BankInvest Hojrentelande

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BankInvest Hojrentelande are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong primary indicators, BankInvest Hojrentelande is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ANT and BankInvest Hojrentelande

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

The idea behind ANT and BankInvest Hojrentelande 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.