Correlation Between ANT and GANGLONG CHINA
Can any of the company-specific risk be diversified away by investing in both ANT and GANGLONG CHINA 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 GANGLONG CHINA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and GANGLONG CHINA PRGRLTD, you can compare the effects of market volatilities on ANT and GANGLONG CHINA 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 GANGLONG CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and GANGLONG CHINA.
Diversification Opportunities for ANT and GANGLONG CHINA
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANT and GANGLONG is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding ANT and GANGLONG CHINA PRGRLTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GANGLONG CHINA PRGRLTD 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 GANGLONG CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GANGLONG CHINA PRGRLTD has no effect on the direction of ANT i.e., ANT and GANGLONG CHINA go up and down completely randomly.
Pair Corralation between ANT and GANGLONG CHINA
Assuming the 90 days trading horizon ANT is expected to generate 0.85 times more return on investment than GANGLONG CHINA. However, ANT is 1.18 times less risky than GANGLONG CHINA. It trades about 0.1 of its potential returns per unit of risk. GANGLONG CHINA PRGRLTD is currently generating about 0.08 per unit of risk. If you would invest 307.00 in ANT on October 28, 2024 and sell it today you would lose (160.00) from holding ANT or give up 52.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 59.56% |
| Values | Daily Returns |
ANT vs. GANGLONG CHINA PRGRLTD
Performance |
| Timeline |
| ANT |
| GANGLONG CHINA PRGRLTD |
ANT and GANGLONG CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and GANGLONG CHINA
The main advantage of trading using opposite ANT and GANGLONG CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, GANGLONG CHINA 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 GANGLONG CHINA will offset losses from the drop in GANGLONG CHINA's long position.The idea behind ANT and GANGLONG CHINA PRGRLTD 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.| GANGLONG CHINA vs. China Resources Land | GANGLONG CHINA vs. CTP NV EO | GANGLONG CHINA vs. Superior Plus Corp | GANGLONG CHINA vs. Origin Agritech |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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