Correlation Between ANT and Betashares Asia
Can any of the company-specific risk be diversified away by investing in both ANT and Betashares Asia 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 Betashares Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Betashares Asia Technology, you can compare the effects of market volatilities on ANT and Betashares Asia 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 Betashares Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Betashares Asia.
Diversification Opportunities for ANT and Betashares Asia
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and Betashares is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Betashares Asia Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betashares Asia Tech 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 Betashares Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betashares Asia Tech has no effect on the direction of ANT i.e., ANT and Betashares Asia go up and down completely randomly.
Pair Corralation between ANT and Betashares Asia
Assuming the 90 days trading horizon ANT is expected to generate 20.85 times more return on investment than Betashares Asia. However, ANT is 20.85 times more volatile than Betashares Asia Technology. It trades about 0.09 of its potential returns per unit of risk. Betashares Asia Technology is currently generating about 0.01 per unit of risk. If you would invest 147.00 in ANT on October 20, 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 | 90.91% |
| Values | Daily Returns |
ANT vs. Betashares Asia Technology
Performance |
| Timeline |
| ANT |
| Betashares Asia Tech |
ANT and Betashares Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Betashares Asia
The main advantage of trading using opposite ANT and Betashares Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Betashares Asia 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 Betashares Asia will offset losses from the drop in Betashares Asia's long position.The idea behind ANT and Betashares Asia Technology 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.| Betashares Asia vs. Betashares Australian Major | Betashares Asia vs. Betashares Wealth Builder | Betashares Asia vs. Betashares Australian Cash | Betashares Asia vs. Betashares Australian Bank |
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 .
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