Correlation Between ANT and Data Modul
Can any of the company-specific risk be diversified away by investing in both ANT and Data Modul 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 Data Modul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Data Modul AG, you can compare the effects of market volatilities on ANT and Data Modul 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 Data Modul. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Data Modul.
Diversification Opportunities for ANT and Data Modul
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and Data is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Data Modul AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Modul AG 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 Data Modul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Modul AG has no effect on the direction of ANT i.e., ANT and Data Modul go up and down completely randomly.
Pair Corralation between ANT and Data Modul
Assuming the 90 days trading horizon ANT is expected to generate 6.24 times more return on investment than Data Modul. However, ANT is 6.24 times more volatile than Data Modul AG. It trades about 0.11 of its potential returns per unit of risk. Data Modul AG is currently generating about -0.04 per unit of risk. If you would invest 130.00 in ANT on October 11, 2024 and sell it today you would earn a total of 17.00 from holding ANT or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
ANT vs. Data Modul AG
Performance |
| Timeline |
| ANT |
| Data Modul AG |
ANT and Data Modul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Data Modul
The main advantage of trading using opposite ANT and Data Modul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Data Modul 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 Data Modul will offset losses from the drop in Data Modul's long position.The idea behind ANT and Data Modul AG 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.| Data Modul vs. SEI INVESTMENTS | Data Modul vs. JD SPORTS FASH | Data Modul vs. NTG Nordic Transport | Data Modul vs. WisdomTree Investments |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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