Correlation Between Gibraltar Industries and Antelope Enterprise

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

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

Diversification Opportunities for Gibraltar Industries and Antelope Enterprise

-0.56

Correlation Coefficient

Gibraltar Industries  Antelope Enterprise

Excellent diversification

The 3 months correlation between Gibraltar and Antelope is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gibraltar Industries and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and Gibraltar Industries 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 Gibraltar Industries 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 Gibraltar Industries i.e., Gibraltar Industries and Antelope Enterprise go up and down completely randomly.

Pair Corralation between Gibraltar Industries and Antelope Enterprise

Given the investment horizon of 90 days Gibraltar Industries is expected to generate 0.4 times more return on investment than Antelope Enterprise. However, Gibraltar Industries is 2.47 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 -0.2 per unit of risk. If you would invest  5,867  in Gibraltar Industries on December 30, 2024 and sell it today you would earn a total of  82.00  from holding Gibraltar Industries or generate 1.4% return on investment over 90 days.

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

Gibraltar Industries  vs.  Antelope Enterprise Holdings

Gibraltar Industries

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gibraltar Industries are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Gibraltar Industries is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Antelope Enterprise

Risk-Adjusted Performance

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

Pair Trading with Gibraltar Industries and Antelope Enterprise

The main advantage of trading using opposite Gibraltar Industries and Antelope Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gibraltar Industries 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 Gibraltar Industries 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.