Correlation Between Falcon Metals and Anteris Technologies

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

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

Diversification Opportunities for Falcon Metals and Anteris Technologies

0.72

Correlation Coefficient

Falcon Metals  Anteris Technologies

Poor diversification

The 3 months correlation between Falcon and Anteris is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Metals and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Falcon Metals 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 Falcon Metals 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 Falcon Metals i.e., Falcon Metals and Anteris Technologies go up and down completely randomly.

Pair Corralation between Falcon Metals and Anteris Technologies

Assuming the 90 days trading horizon Falcon Metals is expected to generate 2.77 times more return on investment than Anteris Technologies. However, Falcon Metals is 2.77 times more volatile than Anteris Technologies. It trades about 0.02 of its potential returns per unit of risk. Anteris Technologies is currently generating about -0.06 per unit of risk. If you would invest  23.00  in Falcon Metals on October 26, 2024 and sell it today you would lose (9.00) from holding Falcon Metals or give up 39.13% of portfolio value over 90 days.

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

Falcon Metals  vs.  Anteris Technologies

Falcon Metals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic 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.

Pair Trading with Falcon Metals and Anteris Technologies

The main advantage of trading using opposite Falcon Metals and Anteris Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Metals 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 Falcon Metals 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.