Correlation Between Perma Pipe and Antelope Enterprise

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

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

Diversification Opportunities for Perma Pipe and Antelope Enterprise

-0.67

Correlation Coefficient

Perma Pipe  Antelope Enterprise

Excellent diversification

The 3 months correlation between Perma and Antelope is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Perma Pipe International Holdi and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and Perma Pipe 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 Perma Pipe International Holdings 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 Perma Pipe i.e., Perma Pipe and Antelope Enterprise go up and down completely randomly.

Pair Corralation between Perma Pipe and Antelope Enterprise

Given the investment horizon of 90 days Perma Pipe International Holdings is expected to under-perform the Antelope Enterprise. But the stock apears to be less risky and, when comparing its historical volatility, Perma Pipe International Holdings is 2.42 times less risky than Antelope Enterprise. The stock trades about -0.11 of its potential returns per unit of risk. The Antelope Enterprise Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Antelope Enterprise Holdings on October 5, 2024 and sell it today you would earn a total of  1.00  from holding Antelope Enterprise Holdings or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Perma Pipe International Holdi  vs.  Antelope Enterprise Holdings

Perma Pipe Internati

Risk-Adjusted Performance

4 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Perma Pipe International Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Perma Pipe demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 conflicting performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Perma Pipe and Antelope Enterprise

The main advantage of trading using opposite Perma Pipe and Antelope Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perma Pipe 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 Perma Pipe International Holdings 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.