Correlation Between ANT and Perkins Select

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

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

Diversification Opportunities for ANT and Perkins Select

0.01

Correlation Coefficient

ANT  Perkins Select

Significant diversification

The 3 months correlation between ANT and Perkins is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Perkins Select Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perkins Select Value 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 Perkins Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perkins Select Value has no effect on the direction of ANT i.e., ANT and Perkins Select go up and down completely randomly.

Pair Corralation between ANT and Perkins Select

Assuming the 90 days trading horizon ANT is expected to generate 51.11 times more return on investment than Perkins Select. However, ANT is 51.11 times more volatile than Perkins Select Value. It trades about 0.1 of its potential returns per unit of risk. Perkins Select Value is currently generating about 0.04 per unit of risk. If you would invest  295.00  in ANT on October 10, 2024 and sell it today you would lose (148.00) from holding ANT or give up 50.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	60.0%
Values	Daily Returns

ANT  vs.  Perkins Select Value

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.

Perkins Select Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perkins Select Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with ANT and Perkins Select

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

The idea behind ANT and Perkins Select Value 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.