Correlation Between ANT and Jack Nathan

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

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

Diversification Opportunities for ANT and Jack Nathan

0.32

Correlation Coefficient

ANT  Jack Nathan

Weak diversification

The 3 months correlation between ANT and Jack is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Jack Nathan Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Nathan Medical 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 Jack Nathan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Nathan Medical has no effect on the direction of ANT i.e., ANT and Jack Nathan go up and down completely randomly.

Pair Corralation between ANT and Jack Nathan

Assuming the 90 days trading horizon ANT is expected to generate 3.7 times more return on investment than Jack Nathan. However, ANT is 3.7 times more volatile than Jack Nathan Medical. It trades about 0.14 of its potential returns per unit of risk. Jack Nathan Medical is currently generating about 0.04 per unit of risk. If you would invest  1,048  in ANT on October 25, 2024 and sell it today you would lose (901.00) from holding ANT or give up 85.97% 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.  Jack Nathan Medical

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.

Jack Nathan Medical

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jack Nathan Medical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Jack Nathan showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANT and Jack Nathan

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

The idea behind ANT and Jack Nathan Medical 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.