Correlation Between ANT and COREBRIDGE FINANCIAL
Can any of the company-specific risk be diversified away by investing in both ANT and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and COREBRIDGE FINANCIAL INC, you can compare the effects of market volatilities on ANT and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and COREBRIDGE FINANCIAL.
Diversification Opportunities for ANT and COREBRIDGE FINANCIAL
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and COREBRIDGE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ANT and COREBRIDGE FINANCIAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COREBRIDGE FINANCIAL INC 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 COREBRIDGE FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COREBRIDGE FINANCIAL INC has no effect on the direction of ANT i.e., ANT and COREBRIDGE FINANCIAL go up and down completely randomly.
Pair Corralation between ANT and COREBRIDGE FINANCIAL
Assuming the 90 days trading horizon ANT is expected to generate 33.86 times more return on investment than COREBRIDGE FINANCIAL. However, ANT is 33.86 times more volatile than COREBRIDGE FINANCIAL INC. It trades about 0.13 of its potential returns per unit of risk. COREBRIDGE FINANCIAL INC is currently generating about 0.06 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 Against |
| Strength | Insignificant |
| Accuracy | 96.67% |
| Values | Daily Returns |
ANT vs. COREBRIDGE FINANCIAL INC
Performance |
| Timeline |
| ANT |
| COREBRIDGE FINANCIAL INC |
ANT and COREBRIDGE FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and COREBRIDGE FINANCIAL
The main advantage of trading using opposite ANT and COREBRIDGE FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL will offset losses from the drop in COREBRIDGE FINANCIAL's long position.The idea behind ANT and COREBRIDGE FINANCIAL INC 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.| COREBRIDGE FINANCIAL vs. Ares Management Corp | COREBRIDGE FINANCIAL vs. Superior Plus Corp | COREBRIDGE FINANCIAL vs. NMI Holdings | COREBRIDGE FINANCIAL vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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