Correlation Between ANT and Hudson Acquisition

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Can any of the company-specific risk be diversified away by investing in both ANT and Hudson 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 Hudson Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Hudson Acquisition I, you can compare the effects of market volatilities on ANT and Hudson 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 Hudson Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Hudson Acquisition.

Diversification Opportunities for ANT and Hudson Acquisition

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ANT and Hudson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Hudson Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Acquisition 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 Hudson Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Acquisition has no effect on the direction of ANT i.e., ANT and Hudson Acquisition go up and down completely randomly.

Pair Corralation between ANT and Hudson Acquisition

Assuming the 90 days trading horizon ANT is expected to generate 18.82 times more return on investment than Hudson Acquisition. However, ANT is 18.82 times more volatile than Hudson Acquisition I. It trades about 0.1 of its potential returns per unit of risk. Hudson Acquisition I is currently generating about 0.03 per unit of risk. If you would invest  288.00  in ANT on October 14, 2024 and sell it today you would lose (141.00) from holding ANT or give up 48.96% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy60.28%
ValuesDaily Returns

ANT  vs.  Hudson Acquisition I

 Performance 
       Timeline  
ANT 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in ANT are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, ANT exhibited solid returns over the last few months and may actually be approaching a breakup point.
Hudson Acquisition 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Hudson Acquisition I has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Hudson Acquisition is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

ANT and Hudson Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ANT and Hudson Acquisition

The main advantage of trading using opposite ANT and Hudson Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Hudson 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 Hudson Acquisition will offset losses from the drop in Hudson Acquisition's long position.
The idea behind ANT and Hudson Acquisition I 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.
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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