Correlation Between ANT and Dassault Aviation
Can any of the company-specific risk be diversified away by investing in both ANT and Dassault Aviation 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 Dassault Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Dassault Aviation SA, you can compare the effects of market volatilities on ANT and Dassault Aviation 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 Dassault Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Dassault Aviation.
Diversification Opportunities for ANT and Dassault Aviation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANT and Dassault is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Dassault Aviation SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dassault Aviation 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 Dassault Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dassault Aviation has no effect on the direction of ANT i.e., ANT and Dassault Aviation go up and down completely randomly.
Pair Corralation between ANT and Dassault Aviation
If you would invest 147.00 in ANT on October 21, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ANT vs. Dassault Aviation SA
Performance |
| Timeline |
| ANT |
| Dassault Aviation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ANT and Dassault Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Dassault Aviation
The main advantage of trading using opposite ANT and Dassault Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Dassault Aviation 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 Dassault Aviation will offset losses from the drop in Dassault Aviation's long position.The idea behind ANT and Dassault Aviation SA 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.| Dassault Aviation vs. Inspire Medical Systems | Dassault Aviation vs. Medical Properties Trust | Dassault Aviation vs. Compugroup Medical SE | Dassault Aviation vs. Silicon Motion Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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