Correlation Between ANT and Star Pacific

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

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

Diversification Opportunities for ANT and Star Pacific

0.22

Correlation Coefficient

ANT  Star Pacific

Modest diversification

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

Pair Corralation between ANT and Star Pacific

Assuming the 90 days trading horizon ANT is expected to generate 21.77 times more return on investment than Star Pacific. However, ANT is 21.77 times more volatile than Star Pacific Tbk. It trades about 0.1 of its potential returns per unit of risk. Star Pacific Tbk is currently generating about 0.0 per unit of risk. If you would invest  270.00  in ANT on October 9, 2024 and sell it today you would lose (123.00) from holding ANT or give up 45.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	63.33%
Values	Daily Returns

ANT  vs.  Star Pacific Tbk

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.

Star Pacific Tbk

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Star Pacific Tbk are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Star Pacific is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with ANT and Star Pacific

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

The idea behind ANT and Star Pacific Tbk 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.

Check out your portfolio center.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..