Correlation Between ANT and Innovation1 Biotech

Can any of the company-specific risk be diversified away by investing in both ANT and Innovation1 Biotech 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 Innovation1 Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ANT and Innovation1 Biotech, you can compare the effects of market volatilities on ANT and Innovation1 Biotech 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 Innovation1 Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Innovation1 Biotech.

Diversification Opportunities for ANT and Innovation1 Biotech

0.0

Correlation Coefficient

ANT  Innovation1 Biotech

Pay attention - limited upside

The 3 months correlation between ANT and Innovation1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Innovation1 Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovation1 Biotech 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 Innovation1 Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovation1 Biotech has no effect on the direction of ANT i.e., ANT and Innovation1 Biotech go up and down completely randomly.

Pair Corralation between ANT and Innovation1 Biotech

If you would invest  130.00  in ANT on October 11, 2024 and sell it today you would earn a total of  17.00  from holding ANT or generate 13.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.91%
Values	Daily Returns

ANT  vs.  Innovation1 Biotech

ANT

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 16 (%) 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.

Innovation1 Biotech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Innovation1 Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Innovation1 Biotech is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ANT and Innovation1 Biotech

The main advantage of trading using opposite ANT and Innovation1 Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Innovation1 Biotech 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 Innovation1 Biotech will offset losses from the drop in Innovation1 Biotech's long position.

The idea behind ANT and Innovation1 Biotech 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..