Correlation Between ANT and Pimco Commodityrealret

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

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

Diversification Opportunities for ANT and Pimco Commodityrealret

-0.03

Correlation Coefficient

ANT  Pimco Commodityrealret

Good diversification

The 3 months correlation between ANT and Pimco is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Pimco Commodityrealreturn Stra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Commodityrealret 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 Pimco Commodityrealret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Commodityrealret has no effect on the direction of ANT i.e., ANT and Pimco Commodityrealret go up and down completely randomly.

Pair Corralation between ANT and Pimco Commodityrealret

Assuming the 90 days trading horizon ANT is expected to generate 20.8 times more return on investment than Pimco Commodityrealret. However, ANT is 20.8 times more volatile than Pimco Commodityrealreturn Strategy. It trades about 0.06 of its potential returns per unit of risk. Pimco Commodityrealreturn Strategy is currently generating about 0.26 per unit of risk. If you would invest  147.00  in ANT on December 19, 2024 and sell it today you would earn a total of  0.00  from holding ANT or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

ANT  vs.  Pimco Commodityrealreturn Stra

ANT

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 4 (%) 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.

Pimco Commodityrealret

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pimco Commodityrealreturn Strategy are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Pimco Commodityrealret may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with ANT and Pimco Commodityrealret

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

The idea behind ANT and Pimco Commodityrealreturn Strategy 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.