Correlation Between ANT and Carnival
Can any of the company-specific risk be diversified away by investing in both ANT and Carnival 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 Carnival into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Carnival, you can compare the effects of market volatilities on ANT and Carnival 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 Carnival. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Carnival.
Diversification Opportunities for ANT and Carnival
Very good diversification
The 3 months correlation between ANT and Carnival is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Carnival in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnival 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 Carnival. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnival has no effect on the direction of ANT i.e., ANT and Carnival go up and down completely randomly.
Pair Corralation between ANT and Carnival
Assuming the 90 days trading horizon ANT is expected to generate 20.36 times more return on investment than Carnival. However, ANT is 20.36 times more volatile than Carnival. It trades about 0.1 of its potential returns per unit of risk. Carnival is currently generating about 0.08 per unit of risk. If you would invest 321.00 in ANT on October 20, 2024 and sell it today you would lose (174.00) from holding ANT or give up 54.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 60.2% |
| Values | Daily Returns |
ANT vs. Carnival
Performance |
| Timeline |
| ANT |
| Carnival |
ANT and Carnival Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Carnival
The main advantage of trading using opposite ANT and Carnival positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Carnival 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 Carnival will offset losses from the drop in Carnival's long position.The idea behind ANT and Carnival 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.| Carnival vs. Royal Caribbean Cruises | Carnival vs. Airbnb Inc | Carnival vs. Expedia Group | Carnival vs. Booking Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance |