Correlation Between ANT and InflaRx NV

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

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

Diversification Opportunities for ANT and InflaRx NV

0.22

Correlation Coefficient

ANT  InflaRx NV

Modest diversification

The 3 months correlation between ANT and InflaRx is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ANT and InflaRx NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InflaRx NV 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 InflaRx NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InflaRx NV has no effect on the direction of ANT i.e., ANT and InflaRx NV go up and down completely randomly.

Pair Corralation between ANT and InflaRx NV

Assuming the 90 days trading horizon ANT is expected to generate 2.49 times more return on investment than InflaRx NV. However, ANT is 2.49 times more volatile than InflaRx NV. It trades about 0.06 of its potential returns per unit of risk. InflaRx NV is currently generating about -0.14 per unit of risk. If you would invest  147.00  in ANT on December 19, 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	Very Weak
Accuracy	93.65%
Values	Daily Returns

ANT  vs.  InflaRx NV

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.

InflaRx NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days InflaRx NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ANT and InflaRx NV

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

The idea behind ANT and InflaRx NV 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.