Correlation Between ANT and Collaborative Investment

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

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

Diversification Opportunities for ANT and Collaborative Investment

0.02

Correlation Coefficient

ANT  Collaborative Investment

Significant diversification

The 3 months correlation between ANT and Collaborative is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Collaborative Investment Serie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collaborative 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 Collaborative Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collaborative Investment has no effect on the direction of ANT i.e., ANT and Collaborative Investment go up and down completely randomly.

Pair Corralation between ANT and Collaborative Investment

Assuming the 90 days trading horizon ANT is expected to generate 152.82 times more return on investment than Collaborative Investment. However, ANT is 152.82 times more volatile than Collaborative Investment Series. It trades about 0.17 of its potential returns per unit of risk. Collaborative Investment Series is currently generating about 0.02 per unit of risk. If you would invest  642.00  in ANT on October 24, 2024 and sell it today you would lose (495.00) from holding ANT or give up 77.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.29%
Values	Daily Returns

ANT  vs.  Collaborative Investment Serie

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.

Collaborative Investment

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Collaborative Investment Series are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Collaborative Investment is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with ANT and Collaborative Investment

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

The idea behind ANT and Collaborative Investment Series 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.