Correlation Between ANT and BlackRock ESG

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

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

Diversification Opportunities for ANT and BlackRock ESG

-0.22

Correlation Coefficient

ANT  BlackRock ESG

Very good diversification

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

Pair Corralation between ANT and BlackRock ESG

Assuming the 90 days trading horizon ANT is expected to generate 70.02 times more return on investment than BlackRock ESG. However, ANT is 70.02 times more volatile than BlackRock ESG Multi Asset. It trades about 0.08 of its potential returns per unit of risk. BlackRock ESG Multi Asset is currently generating about -0.24 per unit of risk. If you would invest  145.00  in ANT on October 10, 2024 and sell it today you would earn a total of  2.00  from holding ANT or generate 1.38% return on investment over 90 days.

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

ANT  vs.  BlackRock ESG Multi Asset

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.

BlackRock ESG Multi

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock ESG Multi Asset are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, BlackRock ESG is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ANT and BlackRock ESG

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

The idea behind ANT and BlackRock ESG Multi Asset 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.