Correlation Between ANT and Agrometal SAI
Can any of the company-specific risk be diversified away by investing in both ANT and Agrometal SAI 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 Agrometal SAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Agrometal SAI, you can compare the effects of market volatilities on ANT and Agrometal SAI 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 Agrometal SAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Agrometal SAI.
Diversification Opportunities for ANT and Agrometal SAI
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANT and Agrometal is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Agrometal SAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrometal SAI 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 Agrometal SAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrometal SAI has no effect on the direction of ANT i.e., ANT and Agrometal SAI go up and down completely randomly.
Pair Corralation between ANT and Agrometal SAI
Assuming the 90 days trading horizon ANT is expected to generate 5.56 times more return on investment than Agrometal SAI. However, ANT is 5.56 times more volatile than Agrometal SAI. It trades about 0.08 of its potential returns per unit of risk. Agrometal SAI is currently generating about -0.06 per unit of risk. If you would invest 147.00 in ANT on November 2, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANT vs. Agrometal SAI
Performance |
| Timeline |
| ANT |
| Agrometal SAI |
ANT and Agrometal SAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Agrometal SAI
The main advantage of trading using opposite ANT and Agrometal SAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Agrometal SAI 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 Agrometal SAI will offset losses from the drop in Agrometal SAI's long position.The idea behind ANT and Agrometal SAI 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.| Agrometal SAI vs. Harmony Gold Mining | Agrometal SAI vs. Compania de Transporte | Agrometal SAI vs. Transportadora de Gas |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |