Correlation Between ANT and First Eagle

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

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

Diversification Opportunities for ANT and First Eagle

-0.01

Correlation Coefficient

ANT  First Eagle

Good diversification

The 3 months correlation between ANT and First is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ANT and First Eagle Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Alternative 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Alternative has no effect on the direction of ANT i.e., ANT and First Eagle go up and down completely randomly.

Pair Corralation between ANT and First Eagle

If you would invest  933.00  in ANT on October 27, 2024 and sell it today you would lose (786.00) from holding ANT or give up 84.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.56%
Values	Daily Returns

ANT  vs.  First Eagle Alternative

ANT

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 12 (%) 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.

First Eagle Alternative

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days First Eagle Alternative has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, First Eagle is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ANT and First Eagle

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

The idea behind ANT and First Eagle Alternative 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.