Correlation Between Antelope Enterprise and China State
Can any of the company-specific risk be diversified away by investing in both Antelope Enterprise and China State 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 Antelope Enterprise and China State into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antelope Enterprise Holdings and China State Construction, you can compare the effects of market volatilities on Antelope Enterprise and China State 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 Antelope Enterprise with a short position of China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antelope Enterprise and China State.
Diversification Opportunities for Antelope Enterprise and China State
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Antelope and China is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction and Antelope Enterprise 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 Antelope Enterprise Holdings are associated (or correlated) with China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and China State go up and down completely randomly.
Pair Corralation between Antelope Enterprise and China State
Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the China State. In addition to that, Antelope Enterprise is 1.74 times more volatile than China State Construction. It trades about -0.08 of its total potential returns per unit of risk. China State Construction is currently generating about 0.07 per unit of volatility. If you would invest 56.00 in China State Construction on September 12, 2024 and sell it today you would earn a total of 49.00 from holding China State Construction or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.97% |
| Values | Daily Returns |
Antelope Enterprise Holdings vs. China State Construction
Performance |
| Timeline |
| Antelope Enterprise |
| China State Construction |
Antelope Enterprise and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antelope Enterprise and China State
The main advantage of trading using opposite Antelope Enterprise and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antelope Enterprise position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Antelope Enterprise vs. Azek Company | Antelope Enterprise vs. AAON Inc | Antelope Enterprise vs. GMS Inc | Antelope Enterprise vs. Intelligent Living Application |
| China State vs. Arcadis NV | China State vs. China Railway Group | China State vs. Skanska AB ser | China State vs. Digital Locations |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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