Correlation Between Collins Foods and Antipa Minerals

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

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

Diversification Opportunities for Collins Foods and Antipa Minerals

-0.25

Correlation Coefficient

Collins Foods  Antipa Minerals

Very good diversification

The 3 months correlation between Collins and Antipa is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Collins Foods and Antipa Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antipa Minerals and Collins Foods 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 Collins Foods are associated (or correlated) with Antipa Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antipa Minerals has no effect on the direction of Collins Foods i.e., Collins Foods and Antipa Minerals go up and down completely randomly.

Pair Corralation between Collins Foods and Antipa Minerals

Assuming the 90 days trading horizon Collins Foods is expected to generate 33.24 times less return on investment than Antipa Minerals. But when comparing it to its historical volatility, Collins Foods is 3.29 times less risky than Antipa Minerals. It trades about 0.0 of its potential returns per unit of risk. Antipa Minerals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2.30  in Antipa Minerals on October 22, 2024 and sell it today you would earn a total of  0.60  from holding Antipa Minerals or generate 26.09% return on investment over 90 days.

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

Collins Foods  vs.  Antipa Minerals

Collins Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Collins Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Antipa Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antipa Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Collins Foods and Antipa Minerals

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

The idea behind Collins Foods and Antipa Minerals 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.