Correlation Between ANT and AFFLUENT MEDICAL
Can any of the company-specific risk be diversified away by investing in both ANT and AFFLUENT MEDICAL 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 ANT and AFFLUENT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and AFFLUENT MEDICAL SAS, you can compare the effects of market volatilities on ANT and AFFLUENT MEDICAL 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 ANT with a short position of AFFLUENT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and AFFLUENT MEDICAL.
Diversification Opportunities for ANT and AFFLUENT MEDICAL
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANT and AFFLUENT is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ANT and AFFLUENT MEDICAL SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFFLUENT MEDICAL SAS and ANT 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 ANT are associated (or correlated) with AFFLUENT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFFLUENT MEDICAL SAS has no effect on the direction of ANT i.e., ANT and AFFLUENT MEDICAL go up and down completely randomly.
Pair Corralation between ANT and AFFLUENT MEDICAL
Assuming the 90 days trading horizon ANT is expected to generate 22.3 times more return on investment than AFFLUENT MEDICAL. However, ANT is 22.3 times more volatile than AFFLUENT MEDICAL SAS. It trades about 0.13 of its potential returns per unit of risk. AFFLUENT MEDICAL SAS is currently generating about 0.0 per unit of risk. If you would invest 928.00 in ANT on October 13, 2024 and sell it today you would lose (781.00) from holding ANT or give up 84.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.67% |
| Values | Daily Returns |
ANT vs. AFFLUENT MEDICAL SAS
Performance |
| Timeline |
| ANT |
| AFFLUENT MEDICAL SAS |
ANT and AFFLUENT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and AFFLUENT MEDICAL
The main advantage of trading using opposite ANT and AFFLUENT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, AFFLUENT MEDICAL 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 AFFLUENT MEDICAL will offset losses from the drop in AFFLUENT MEDICAL's long position.The idea behind ANT and AFFLUENT MEDICAL SAS 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.| AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc |
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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