Correlation Between ANT and Abrdn Asia

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Can any of the company-specific risk be diversified away by investing in both ANT and Abrdn Asia 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 Abrdn Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and abrdn Asia Pacific, you can compare the effects of market volatilities on ANT and Abrdn Asia 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 Abrdn Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Abrdn Asia.

Diversification Opportunities for ANT and Abrdn Asia

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ANT and Abrdn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANT and abrdn Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Asia Pacific 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 Abrdn Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Asia Pacific has no effect on the direction of ANT i.e., ANT and Abrdn Asia go up and down completely randomly.

Pair Corralation between ANT and Abrdn Asia

Assuming the 90 days trading horizon ANT is expected to generate 18.14 times more return on investment than Abrdn Asia. However, ANT is 18.14 times more volatile than abrdn Asia Pacific. It trades about 0.09 of its potential returns per unit of risk. abrdn Asia Pacific is currently generating about 0.14 per unit of risk. If you would invest  147.00  in ANT on October 25, 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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy90.48%
ValuesDaily Returns

ANT  vs.  abrdn Asia Pacific

 Performance 
       Timeline  
ANT 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
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.
abrdn Asia Pacific 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Asia Pacific are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Abrdn Asia is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

ANT and Abrdn Asia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ANT and Abrdn Asia

The main advantage of trading using opposite ANT and Abrdn Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Abrdn Asia 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 Abrdn Asia will offset losses from the drop in Abrdn Asia's long position.
The idea behind ANT and abrdn Asia Pacific 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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