Correlation Between ANT and IShares Govt
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By analyzing existing cross correlation between ANT and iShares Govt Bond, you can compare the effects of market volatilities on ANT and IShares Govt 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 IShares Govt. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and IShares Govt.
Diversification Opportunities for ANT and IShares Govt
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANT and IShares is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding ANT and iShares Govt Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Govt Bond 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 IShares Govt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Govt Bond has no effect on the direction of ANT i.e., ANT and IShares Govt go up and down completely randomly.
Pair Corralation between ANT and IShares Govt
Assuming the 90 days trading horizon ANT is expected to generate 239.07 times more return on investment than IShares Govt. However, ANT is 239.07 times more volatile than iShares Govt Bond. It trades about 0.16 of its potential returns per unit of risk. iShares Govt Bond is currently generating about -0.01 per unit of risk. If you would invest 610.00 in ANT on November 2, 2024 and sell it today you would lose (463.00) from holding ANT or give up 75.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.26% |
| Values | Daily Returns |
ANT vs. iShares Govt Bond
Performance |
| Timeline |
| ANT |
| iShares Govt Bond |
ANT and IShares Govt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and IShares Govt
The main advantage of trading using opposite ANT and IShares Govt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, IShares Govt 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 IShares Govt will offset losses from the drop in IShares Govt's long position.The idea behind ANT and iShares Govt Bond 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.| IShares Govt vs. iShares Global AAA AA | IShares Govt vs. iShares Smart City | IShares Govt vs. iShares Broad High | IShares Govt vs. iShares Emerging Markets |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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