Correlation Between Carlton Investments and Anteris Technologies

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

By analyzing existing cross correlation between Carlton Investments and Anteris Technologies, you can compare the effects of market volatilities on Carlton Investments and Anteris Technologies 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 Carlton Investments with a short position of Anteris Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlton Investments and Anteris Technologies.

Diversification Opportunities for Carlton Investments and Anteris Technologies

0.76

Correlation Coefficient

Carlton Investments  Anteris Technologies

Poor diversification

The 3 months correlation between Carlton and Anteris is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Carlton Investments and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Carlton Investments 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 Carlton Investments are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Carlton Investments i.e., Carlton Investments and Anteris Technologies go up and down completely randomly.

Pair Corralation between Carlton Investments and Anteris Technologies

Assuming the 90 days trading horizon Carlton Investments is expected to generate 3.53 times less return on investment than Anteris Technologies. But when comparing it to its historical volatility, Carlton Investments is 4.25 times less risky than Anteris Technologies. It trades about 0.07 of its potential returns per unit of risk. Anteris Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  894.00  in Anteris Technologies on December 22, 2024 and sell it today you would earn a total of  86.00  from holding Anteris Technologies or generate 9.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Carlton Investments  vs.  Anteris Technologies

Carlton Investments

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Carlton Investments are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Carlton Investments is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Anteris Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anteris Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Anteris Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Carlton Investments and Anteris Technologies

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

The idea behind Carlton Investments and Anteris Technologies 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.