Correlation Between Red Hill and Anteris Technologies

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

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

Diversification Opportunities for Red Hill and Anteris Technologies

-0.23

Correlation Coefficient

Red Hill  Anteris Technologies

Very good diversification

The 3 months correlation between Red and Anteris is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Red Hill Iron and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Red Hill 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 Red Hill Iron 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 Red Hill i.e., Red Hill and Anteris Technologies go up and down completely randomly.

Pair Corralation between Red Hill and Anteris Technologies

Assuming the 90 days trading horizon Red Hill Iron is expected to generate 1.03 times more return on investment than Anteris Technologies. However, Red Hill is 1.03 times more volatile than Anteris Technologies. It trades about 0.03 of its potential returns per unit of risk. Anteris Technologies is currently generating about -0.06 per unit of risk. If you would invest  329.00  in Red Hill Iron on October 26, 2024 and sell it today you would earn a total of  76.00  from holding Red Hill Iron or generate 23.1% return on investment over 90 days.

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

Red Hill Iron  vs.  Anteris Technologies

Red Hill Iron

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Red Hill Iron are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Red Hill may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 uncertain 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 Red Hill and Anteris Technologies

The main advantage of trading using opposite Red Hill and Anteris Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Hill 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 Red Hill Iron 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.