Correlation Between ANT and IShares Core
Can any of the company-specific risk be diversified away by investing in both ANT and IShares Core 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 IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and iShares Core MSCI, you can compare the effects of market volatilities on ANT and IShares Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and IShares Core.
Diversification Opportunities for ANT and IShares Core
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANT and IShares is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ANT and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI 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 Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of ANT i.e., ANT and IShares Core go up and down completely randomly.
Pair Corralation between ANT and IShares Core
Assuming the 90 days trading horizon ANT is expected to generate 65.8 times more return on investment than IShares Core. However, ANT is 65.8 times more volatile than iShares Core MSCI. It trades about 0.1 of its potential returns per unit of risk. iShares Core MSCI is currently generating about 0.04 per unit of risk. If you would invest 281.00 in ANT on November 2, 2024 and sell it today you would lose (134.00) from holding ANT or give up 47.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 59.48% |
| Values | Daily Returns |
ANT vs. iShares Core MSCI
Performance |
| Timeline |
| ANT |
| iShares Core MSCI |
ANT and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and IShares Core
The main advantage of trading using opposite ANT and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.The idea behind ANT and iShares Core MSCI 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 Core vs. iShares Govt Bond | IShares Core vs. iShares Global AAA AA | IShares Core vs. iShares Smart City | IShares Core vs. iShares Broad High |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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