Correlation Between ANT and YY Group

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

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

Diversification Opportunities for ANT and YY Group

-0.43

Correlation Coefficient

ANT  YY Group

Very good diversification

The 3 months correlation between ANT and YYGH is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ANT and YY Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YY Group Holding 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 YY Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YY Group Holding has no effect on the direction of ANT i.e., ANT and YY Group go up and down completely randomly.

Pair Corralation between ANT and YY Group

Assuming the 90 days trading horizon ANT is expected to generate 10.59 times more return on investment than YY Group. However, ANT is 10.59 times more volatile than YY Group Holding. It trades about 0.12 of its potential returns per unit of risk. YY Group Holding is currently generating about -0.01 per unit of risk. If you would invest  933.00  in ANT on October 9, 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	Very Weak
Accuracy	91.67%
Values	Daily Returns

ANT  vs.  YY Group Holding

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.

YY Group Holding

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in YY Group Holding are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, YY Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANT and YY Group

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

The idea behind ANT and YY Group Holding 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.