Correlation Between ANT and IncomeShares Alphabet

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

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

Diversification Opportunities for ANT and IncomeShares Alphabet

0.31

Correlation Coefficient

ANT  IncomeShares Alphabet

Weak diversification

The 3 months correlation between ANT and IncomeShares is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ANT and IncomeShares Alphabet Options in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IncomeShares Alphabet 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 IncomeShares Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IncomeShares Alphabet has no effect on the direction of ANT i.e., ANT and IncomeShares Alphabet go up and down completely randomly.

Pair Corralation between ANT and IncomeShares Alphabet

Assuming the 90 days trading horizon ANT is expected to generate 11.31 times more return on investment than IncomeShares Alphabet. However, ANT is 11.31 times more volatile than IncomeShares Alphabet Options. It trades about 0.07 of its potential returns per unit of risk. IncomeShares Alphabet Options is currently generating about -0.12 per unit of risk. If you would invest  147.00  in ANT on December 25, 2024 and sell it today you would lose (12.00) from holding ANT or give up 8.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

ANT  vs.  IncomeShares Alphabet Options

ANT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 5 (%) 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.

IncomeShares Alphabet

Risk-Adjusted Performance

Very Weak

Over the last 90 days IncomeShares Alphabet Options has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Etf's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with ANT and IncomeShares Alphabet

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

The idea behind ANT and IncomeShares Alphabet Options 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.