Correlation Between Anterix and BorgWarner
Can any of the company-specific risk be diversified away by investing in both Anterix and BorgWarner 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 Anterix and BorgWarner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anterix and BorgWarner, you can compare the effects of market volatilities on Anterix and BorgWarner 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 Anterix with a short position of BorgWarner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anterix and BorgWarner.
Diversification Opportunities for Anterix and BorgWarner
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anterix and BorgWarner is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and BorgWarner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BorgWarner and Anterix 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 Anterix are associated (or correlated) with BorgWarner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BorgWarner has no effect on the direction of Anterix i.e., Anterix and BorgWarner go up and down completely randomly.
Pair Corralation between Anterix and BorgWarner
Given the investment horizon of 90 days Anterix is expected to generate 1.65 times more return on investment than BorgWarner. However, Anterix is 1.65 times more volatile than BorgWarner. It trades about 0.04 of its potential returns per unit of risk. BorgWarner is currently generating about 0.0 per unit of risk. If you would invest 2,874 in Anterix on December 7, 2024 and sell it today you would earn a total of 1,051 from holding Anterix or generate 36.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anterix vs. BorgWarner
Performance |
Timeline |
Anterix |
BorgWarner |
Anterix and BorgWarner Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anterix and BorgWarner
The main advantage of trading using opposite Anterix and BorgWarner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix position performs unexpectedly, BorgWarner 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 BorgWarner will offset losses from the drop in BorgWarner's long position.Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
BorgWarner vs. Lear Corporation | BorgWarner vs. Autoliv | BorgWarner vs. Fox Factory Holding | BorgWarner vs. LKQ Corporation |
Check out your portfolio center.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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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