Correlation Between ANT and Easy Software
Can any of the company-specific risk be diversified away by investing in both ANT and Easy Software 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 Easy Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Easy Software AG, you can compare the effects of market volatilities on ANT and Easy Software 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 Easy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Easy Software.
Diversification Opportunities for ANT and Easy Software
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and Easy is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software 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 Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of ANT i.e., ANT and Easy Software go up and down completely randomly.
Pair Corralation between ANT and Easy Software
Assuming the 90 days trading horizon ANT is expected to generate 4.97 times more return on investment than Easy Software. However, ANT is 4.97 times more volatile than Easy Software AG. It trades about 0.12 of its potential returns per unit of risk. Easy Software AG is currently generating about 0.29 per unit of risk. If you would invest 125.00 in ANT on October 12, 2024 and sell it today you would earn a total of 22.00 from holding ANT or generate 17.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
ANT vs. Easy Software AG
Performance |
| Timeline |
| ANT |
| Easy Software AG |
ANT and Easy Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Easy Software
The main advantage of trading using opposite ANT and Easy Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Easy Software 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 Easy Software will offset losses from the drop in Easy Software's long position.The idea behind ANT and Easy Software 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.| Easy Software vs. TEXAS ROADHOUSE | Easy Software vs. EVS Broadcast Equipment | Easy Software vs. Renesas Electronics | Easy Software vs. URBAN OUTFITTERS |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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