Correlation Between ANT and Lifetime Brands
Can any of the company-specific risk be diversified away by investing in both ANT and Lifetime Brands 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 Lifetime Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Lifetime Brands, you can compare the effects of market volatilities on ANT and Lifetime Brands 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 Lifetime Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Lifetime Brands.
Diversification Opportunities for ANT and Lifetime Brands
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANT and Lifetime is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Lifetime Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifetime Brands 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 Lifetime Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifetime Brands has no effect on the direction of ANT i.e., ANT and Lifetime Brands go up and down completely randomly.
Pair Corralation between ANT and Lifetime Brands
Assuming the 90 days trading horizon ANT is expected to generate 15.61 times more return on investment than Lifetime Brands. However, ANT is 15.61 times more volatile than Lifetime Brands. It trades about 0.1 of its potential returns per unit of risk. Lifetime Brands is currently generating about 0.01 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 Against |
| Strength | Insignificant |
| Accuracy | 60.32% |
| Values | Daily Returns |
ANT vs. Lifetime Brands
Performance |
| Timeline |
| ANT |
| Lifetime Brands |
ANT and Lifetime Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Lifetime Brands
The main advantage of trading using opposite ANT and Lifetime Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Lifetime Brands 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 Lifetime Brands will offset losses from the drop in Lifetime Brands' long position.The idea behind ANT and Lifetime Brands 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.| Lifetime Brands vs. Bassett Furniture Industries | Lifetime Brands vs. Flexsteel Industries | Lifetime Brands vs. Hamilton Beach Brands | Lifetime Brands vs. Natuzzi SpA |
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.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |