Correlation Between Daikin IndustriesLtd and Antelope Enterprise

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

By analyzing existing cross correlation between Daikin IndustriesLtd and Antelope Enterprise Holdings, you can compare the effects of market volatilities on Daikin IndustriesLtd and Antelope Enterprise 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 Daikin IndustriesLtd with a short position of Antelope Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daikin IndustriesLtd and Antelope Enterprise.

Diversification Opportunities for Daikin IndustriesLtd and Antelope Enterprise

0.65

Correlation Coefficient

Daikin IndustriesLtd  Antelope Enterprise

Poor diversification

The 3 months correlation between Daikin and Antelope is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Daikin IndustriesLtd and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and Daikin IndustriesLtd 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 Daikin IndustriesLtd are associated (or correlated) with Antelope Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antelope Enterprise has no effect on the direction of Daikin IndustriesLtd i.e., Daikin IndustriesLtd and Antelope Enterprise go up and down completely randomly.

Pair Corralation between Daikin IndustriesLtd and Antelope Enterprise

Assuming the 90 days horizon Daikin IndustriesLtd is expected to generate 0.37 times more return on investment than Antelope Enterprise. However, Daikin IndustriesLtd is 2.73 times less risky than Antelope Enterprise. It trades about -0.02 of its potential returns per unit of risk. Antelope Enterprise Holdings is currently generating about -0.06 per unit of risk. If you would invest  15,389  in Daikin IndustriesLtd on September 25, 2024 and sell it today you would lose (4,389) from holding Daikin IndustriesLtd or give up 28.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.6%
Values	Daily Returns

Daikin IndustriesLtd  vs.  Antelope Enterprise Holdings

Daikin IndustriesLtd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Daikin IndustriesLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Daikin IndustriesLtd is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Antelope Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antelope Enterprise Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Daikin IndustriesLtd and Antelope Enterprise

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

The idea behind Daikin IndustriesLtd and Antelope Enterprise Holdings 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 Transaction History module to view history of all your transactions and understand their impact on performance.