Correlation Between ANT and BANK OF CHINA -H-

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

By analyzing existing cross correlation between ANT and BANK OF CHINA, you can compare the effects of market volatilities on ANT and BANK OF CHINA -H- 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 BANK OF CHINA -H-. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and BANK OF CHINA -H-.

Diversification Opportunities for ANT and BANK OF CHINA -H-

0.0

Correlation Coefficient

ANT  BANK OF CHINA -H-

Pay attention - limited upside

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

Pair Corralation between ANT and BANK OF CHINA -H-

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	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

ANT  vs.  BANK OF CHINA

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.

BANK OF CHINA -H-

Risk-Adjusted Performance

Solid

Over the last 90 days BANK OF CHINA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BANK OF CHINA -H- is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ANT and BANK OF CHINA -H-

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

The idea behind ANT and BANK OF CHINA 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.