Correlation Between ANT and WHG FINVEST

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

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

Diversification Opportunities for ANT and WHG FINVEST

-0.13

Correlation Coefficient

ANT  WHG FINVEST

Good diversification

The 3 months correlation between ANT and WHG is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding ANT and WHG FINVEST SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHG FINVEST SP 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 WHG FINVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHG FINVEST SP has no effect on the direction of ANT i.e., ANT and WHG FINVEST go up and down completely randomly.

Pair Corralation between ANT and WHG FINVEST

Assuming the 90 days trading horizon ANT is expected to generate 3.24 times more return on investment than WHG FINVEST. However, ANT is 3.24 times more volatile than WHG FINVEST SP. It trades about 0.06 of its potential returns per unit of risk. WHG FINVEST SP is currently generating about 0.05 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	90.63%
Values	Daily Returns

ANT  vs.  WHG FINVEST SP

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.

WHG FINVEST SP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WHG FINVEST SP are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak fundamental indicators, WHG FINVEST sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANT and WHG FINVEST

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

The idea behind ANT and WHG FINVEST SP 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.