Correlation Between ANT and Baird Medical

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

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

Diversification Opportunities for ANT and Baird Medical

0.42

Correlation Coefficient

ANT  Baird Medical

Very weak diversification

The 3 months correlation between ANT and Baird is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Baird Medical Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Medical Investment 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 Baird Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Medical Investment has no effect on the direction of ANT i.e., ANT and Baird Medical go up and down completely randomly.

Pair Corralation between ANT and Baird Medical

Assuming the 90 days trading horizon ANT is expected to generate 15.73 times less return on investment than Baird Medical. But when comparing it to its historical volatility, ANT is 5.87 times less risky than Baird Medical. It trades about 0.09 of its potential returns per unit of risk. Baird Medical Investment is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  4.00  in Baird Medical Investment on October 26, 2024 and sell it today you would earn a total of  10.00  from holding Baird Medical Investment or generate 250.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	80.95%
Values	Daily Returns

ANT  vs.  Baird Medical Investment

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.

Baird Medical Investment

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Baird Medical Investment are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Baird Medical showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANT and Baird Medical

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

The idea behind ANT and Baird Medical Investment 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.