Correlation Between ANT and Sky ICT
Can any of the company-specific risk be diversified away by investing in both ANT and Sky ICT 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 Sky ICT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Sky ICT Public, you can compare the effects of market volatilities on ANT and Sky ICT 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 Sky ICT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Sky ICT.
Diversification Opportunities for ANT and Sky ICT
Average diversification
The 3 months correlation between ANT and Sky is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Sky ICT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky ICT Public 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 Sky ICT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky ICT Public has no effect on the direction of ANT i.e., ANT and Sky ICT go up and down completely randomly.
Pair Corralation between ANT and Sky ICT
Assuming the 90 days trading horizon ANT is expected to generate 5.11 times more return on investment than Sky ICT. However, ANT is 5.11 times more volatile than Sky ICT Public. It trades about 0.06 of its potential returns per unit of risk. Sky ICT Public is currently generating about -0.17 per unit of risk. If you would invest 147.00 in ANT on December 18, 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 Together |
Strength | Insignificant |
Accuracy | 96.83% |
Values | Daily Returns |
ANT vs. Sky ICT Public
Performance |
Timeline |
ANT |
Sky ICT Public |
ANT and Sky ICT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANT and Sky ICT
The main advantage of trading using opposite ANT and Sky ICT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Sky ICT 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 Sky ICT will offset losses from the drop in Sky ICT's long position.The idea behind ANT and Sky ICT Public 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.Sky ICT vs. Forth Public | Sky ICT vs. Delta Electronics Public | Sky ICT vs. MFEC PCL | Sky ICT vs. Hana Microelectronics Public |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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