Correlation Between ANT and Yanaprima Hastapersada

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

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

Diversification Opportunities for ANT and Yanaprima Hastapersada

-0.09

Correlation Coefficient

ANT  Yanaprima Hastapersada

Good diversification

The 3 months correlation between ANT and Yanaprima is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Yanaprima Hastapersada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanaprima Hastapersada 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 Yanaprima Hastapersada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanaprima Hastapersada has no effect on the direction of ANT i.e., ANT and Yanaprima Hastapersada go up and down completely randomly.

Pair Corralation between ANT and Yanaprima Hastapersada

Assuming the 90 days trading horizon ANT is expected to generate 22.68 times more return on investment than Yanaprima Hastapersada. However, ANT is 22.68 times more volatile than Yanaprima Hastapersada Tbk. It trades about 0.12 of its potential returns per unit of risk. Yanaprima Hastapersada Tbk is currently generating about -0.04 per unit of risk. If you would invest  933.00  in ANT on October 27, 2024 and sell it today you would lose (786.00) from holding ANT or give up 84.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	60.34%
Values	Daily Returns

ANT  vs.  Yanaprima Hastapersada Tbk

ANT

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 12 (%) 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.

Yanaprima Hastapersada

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yanaprima Hastapersada Tbk are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Yanaprima Hastapersada may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with ANT and Yanaprima Hastapersada

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

The idea behind ANT and Yanaprima Hastapersada Tbk 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.