Correlation Between ANT and ESH Acquisition
Can any of the company-specific risk be diversified away by investing in both ANT and ESH Acquisition 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 ESH Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and ESH Acquisition Corp, you can compare the effects of market volatilities on ANT and ESH Acquisition 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 ESH Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and ESH Acquisition.
Diversification Opportunities for ANT and ESH Acquisition
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANT and ESH is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding ANT and ESH Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESH Acquisition Corp 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 ESH Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESH Acquisition Corp has no effect on the direction of ANT i.e., ANT and ESH Acquisition go up and down completely randomly.
Pair Corralation between ANT and ESH Acquisition
Assuming the 90 days trading horizon ANT is expected to generate 1.45 times less return on investment than ESH Acquisition. In addition to that, ANT is 1.44 times more volatile than ESH Acquisition Corp. It trades about 0.1 of its total potential returns per unit of risk. ESH Acquisition Corp is currently generating about 0.2 per unit of volatility. If you would invest 6.66 in ESH Acquisition Corp on October 20, 2024 and sell it today you would earn a total of 4.34 from holding ESH Acquisition Corp or generate 65.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 61.36% |
| Values | Daily Returns |
ANT vs. ESH Acquisition Corp
Performance |
| Timeline |
| ANT |
| ESH Acquisition Corp |
ANT and ESH Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and ESH Acquisition
The main advantage of trading using opposite ANT and ESH Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, ESH Acquisition 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 ESH Acquisition will offset losses from the drop in ESH Acquisition's long position.The idea behind ANT and ESH Acquisition Corp 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.| ESH Acquisition vs. Ziff Davis | ESH Acquisition vs. Radcom | ESH Acquisition vs. Gamehost | ESH Acquisition vs. Playtika Holding Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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