Correlation Between ANT and Neometals

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

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

Diversification Opportunities for ANT and Neometals

0.0

Correlation Coefficient

ANT  Neometals

Pay attention - limited upside

The 3 months correlation between ANT and Neometals is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Neometals Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neometals ADR 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 Neometals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neometals ADR has no effect on the direction of ANT i.e., ANT and Neometals go up and down completely randomly.

Pair Corralation between ANT and Neometals

If you would invest  1,051  in ANT on October 24, 2024 and sell it today you would lose (904.00) from holding ANT or give up 86.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

ANT  vs.  Neometals Ltd ADR

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.

Neometals ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neometals Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Neometals is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ANT and Neometals

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

The idea behind ANT and Neometals Ltd ADR 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.