Correlation Between ANT and CaliberCos

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

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

Diversification Opportunities for ANT and CaliberCos

0.06

Correlation Coefficient

ANT  CaliberCos

Significant diversification

The 3 months correlation between ANT and CaliberCos is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANT and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A 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 CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of ANT i.e., ANT and CaliberCos go up and down completely randomly.

Pair Corralation between ANT and CaliberCos

Assuming the 90 days trading horizon ANT is expected to generate 2.54 times more return on investment than CaliberCos. However, ANT is 2.54 times more volatile than CaliberCos Class A. It trades about 0.06 of its potential returns per unit of risk. CaliberCos Class A is currently generating about 0.1 per unit of risk. If you would invest  147.00  in ANT on December 20, 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 Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

ANT  vs.  CaliberCos Class A

ANT

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 4 (%) 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.

CaliberCos Class A

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CaliberCos Class A are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, CaliberCos exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANT and CaliberCos

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

The idea behind ANT and CaliberCos Class A 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.