Correlation Between ANT and Fresnillo Plc
Can any of the company-specific risk be diversified away by investing in both ANT and Fresnillo Plc 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 Fresnillo Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Fresnillo plc, you can compare the effects of market volatilities on ANT and Fresnillo Plc 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 Fresnillo Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Fresnillo Plc.
Diversification Opportunities for ANT and Fresnillo Plc
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANT and Fresnillo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Fresnillo plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresnillo plc 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 Fresnillo Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresnillo plc has no effect on the direction of ANT i.e., ANT and Fresnillo Plc go up and down completely randomly.
Pair Corralation between ANT and Fresnillo Plc
Assuming the 90 days trading horizon ANT is expected to generate 7.55 times more return on investment than Fresnillo Plc. However, ANT is 7.55 times more volatile than Fresnillo plc. It trades about 0.13 of its potential returns per unit of risk. Fresnillo plc is currently generating about -0.22 per unit of risk. If you would invest 120.00 in ANT on October 13, 2024 and sell it today you would earn a total of 27.00 from holding ANT or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
ANT vs. Fresnillo plc
Performance |
| Timeline |
| ANT |
| Fresnillo plc |
ANT and Fresnillo Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Fresnillo Plc
The main advantage of trading using opposite ANT and Fresnillo Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Fresnillo Plc 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 Fresnillo Plc will offset losses from the drop in Fresnillo Plc's long position.The idea behind ANT and Fresnillo plc 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.| Fresnillo Plc vs. 24SEVENOFFICE GROUP AB | Fresnillo Plc vs. IMPERIAL TOBACCO | Fresnillo Plc vs. AIR PRODCHEMICALS | Fresnillo Plc vs. Corporate Office Properties |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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