Correlation Between ANT and Sociedad Minera

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

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

Diversification Opportunities for ANT and Sociedad Minera

0.32

Correlation Coefficient

ANT  Sociedad Minera

Weak diversification

The 3 months correlation between ANT and Sociedad is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Sociedad Minera el in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Minera el 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 Sociedad Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Minera el has no effect on the direction of ANT i.e., ANT and Sociedad Minera go up and down completely randomly.

Pair Corralation between ANT and Sociedad Minera

Assuming the 90 days trading horizon ANT is expected to generate 5.64 times more return on investment than Sociedad Minera. However, ANT is 5.64 times more volatile than Sociedad Minera el. It trades about 0.11 of its potential returns per unit of risk. Sociedad Minera el is currently generating about -0.16 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 Together
Strength	Very Weak
Accuracy	59.09%
Values	Daily Returns

ANT  vs.  Sociedad Minera el

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.

Sociedad Minera el

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sociedad Minera el has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with ANT and Sociedad Minera

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

The idea behind ANT and Sociedad Minera el 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.