Correlation Between ANT and HIMARK

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

By analyzing existing cross correlation between ANT and HIMARK 145 10 MAY 26, you can compare the effects of market volatilities on ANT and HIMARK 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 HIMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and HIMARK.

Diversification Opportunities for ANT and HIMARK

-0.39

Correlation Coefficient

ANT  HIMARK

Very good diversification

The 3 months correlation between ANT and HIMARK is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ANT and HIMARK 145 10 MAY 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIMARK 145 10 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 HIMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIMARK 145 10 has no effect on the direction of ANT i.e., ANT and HIMARK go up and down completely randomly.

Pair Corralation between ANT and HIMARK

Assuming the 90 days trading horizon ANT is expected to generate 12.59 times more return on investment than HIMARK. However, ANT is 12.59 times more volatile than HIMARK 145 10 MAY 26. It trades about 0.12 of its potential returns per unit of risk. HIMARK 145 10 MAY 26 is currently generating about -0.29 per unit of risk. If you would invest  125.00  in ANT on October 12, 2024 and sell it today you would earn a total of  22.00  from holding ANT or generate 17.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	38.1%
Values	Daily Returns

ANT  vs.  HIMARK 145 10 MAY 26

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.

HIMARK 145 10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HIMARK 145 10 MAY 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HIMARK 145 10 MAY 26 investors.

Pair Trading with ANT and HIMARK

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

The idea behind ANT and HIMARK 145 10 MAY 26 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.