Correlation Between ANT and CITIC SECURITIES

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

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

Diversification Opportunities for ANT and CITIC SECURITIES

-0.15

Correlation Coefficient

ANT  CITIC SECURITIES

Good diversification

The 3 months correlation between ANT and CITIC is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ANT and CITIC SECURITIES H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC SECURITIES H 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 CITIC SECURITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC SECURITIES H has no effect on the direction of ANT i.e., ANT and CITIC SECURITIES go up and down completely randomly.

Pair Corralation between ANT and CITIC SECURITIES

Assuming the 90 days trading horizon ANT is expected to generate 15.42 times more return on investment than CITIC SECURITIES. However, ANT is 15.42 times more volatile than CITIC SECURITIES H . It trades about 0.14 of its potential returns per unit of risk. CITIC SECURITIES H is currently generating about 0.1 per unit of risk. If you would invest  1,051  in ANT on October 24, 2024 and sell it today you would lose (904.00) from holding ANT or give up 86.01% of portfolio value over 90 days.

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

ANT  vs.  CITIC SECURITIES H

ANT

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 10 (%) 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.

CITIC SECURITIES H

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC SECURITIES H are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CITIC SECURITIES unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANT and CITIC SECURITIES

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

The idea behind ANT and CITIC SECURITIES H 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.