Correlation Between ANT and Vanguard International

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

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

Diversification Opportunities for ANT and Vanguard International

0.35

Correlation Coefficient

ANT  Vanguard International

Weak diversification

The 3 months correlation between ANT and Vanguard is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Vanguard International Dividen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard International 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 Vanguard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard International has no effect on the direction of ANT i.e., ANT and Vanguard International go up and down completely randomly.

Pair Corralation between ANT and Vanguard International

Assuming the 90 days trading horizon ANT is expected to generate 24.65 times more return on investment than Vanguard International. However, ANT is 24.65 times more volatile than Vanguard International Dividend. It trades about 0.11 of its potential returns per unit of risk. Vanguard International Dividend is currently generating about -0.26 per unit of risk. If you would invest  130.00  in ANT on October 11, 2024 and sell it today you would earn a total of  17.00  from holding ANT or generate 13.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

ANT  vs.  Vanguard International Dividen

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.

Vanguard International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vanguard International Dividend has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with ANT and Vanguard International

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

The idea behind ANT and Vanguard International Dividend 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.