Correlation Between ANT and Ngx Energy

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

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

Diversification Opportunities for ANT and Ngx Energy

-0.03

Correlation Coefficient

ANT  Ngx Energy

Good diversification

The 3 months correlation between ANT and Ngx is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Ngx Energy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ngx Energy International 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 Ngx Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ngx Energy International has no effect on the direction of ANT i.e., ANT and Ngx Energy go up and down completely randomly.

Pair Corralation between ANT and Ngx Energy

Assuming the 90 days trading horizon ANT is expected to generate 7.28 times more return on investment than Ngx Energy. However, ANT is 7.28 times more volatile than Ngx Energy International. It trades about 0.14 of its potential returns per unit of risk. Ngx Energy International is currently generating about 0.06 per unit of risk. If you would invest  120.00  in ANT on October 24, 2024 and sell it today you would earn a total of  27.00  from holding ANT or generate 22.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.71%
Values	Daily Returns

ANT  vs.  Ngx Energy International

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.

Ngx Energy International

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ngx Energy International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Ngx Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANT and Ngx Energy

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

The idea behind ANT and Ngx Energy International 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.