Correlation Between Sui and ANT

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

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

Diversification Opportunities for Sui and ANT

0.22

Correlation Coefficient

Sui  ANT

Modest diversification

The 3 months correlation between Sui and ANT is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sui and ANT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANT and Sui 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 Sui are associated (or correlated) with ANT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANT has no effect on the direction of Sui i.e., Sui and ANT go up and down completely randomly.

Pair Corralation between Sui and ANT

Assuming the 90 days trading horizon Sui is expected to under-perform the ANT. But the crypto coin apears to be less risky and, when comparing its historical volatility, Sui is 3.16 times less risky than ANT. The crypto coin trades about -0.07 of its potential returns per unit of risk. The ANT is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  147.00  in ANT on December 28, 2024 and sell it today you would earn a total of  0.00  from holding ANT or generate 0.0% return on investment over 90 days.

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

Sui  vs.  ANT

Sui

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sui has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's forward indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Sui shareholders.

ANT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ANT exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sui and ANT

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

The idea behind Sui and ANT 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.