Correlation Between ANT and LeadDesk Oyj
Can any of the company-specific risk be diversified away by investing in both ANT and LeadDesk Oyj 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 LeadDesk Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and LeadDesk Oyj, you can compare the effects of market volatilities on ANT and LeadDesk Oyj 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 LeadDesk Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and LeadDesk Oyj.
Diversification Opportunities for ANT and LeadDesk Oyj
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANT and LeadDesk is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding ANT and LeadDesk Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeadDesk Oyj 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 LeadDesk Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeadDesk Oyj has no effect on the direction of ANT i.e., ANT and LeadDesk Oyj go up and down completely randomly.
Pair Corralation between ANT and LeadDesk Oyj
Assuming the 90 days trading horizon ANT is expected to generate 26.54 times more return on investment than LeadDesk Oyj. However, ANT is 26.54 times more volatile than LeadDesk Oyj. It trades about 0.1 of its potential returns per unit of risk. LeadDesk Oyj is currently generating about -0.02 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 | 60.32% |
| Values | Daily Returns |
ANT vs. LeadDesk Oyj
Performance |
| Timeline |
| ANT |
| LeadDesk Oyj |
ANT and LeadDesk Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and LeadDesk Oyj
The main advantage of trading using opposite ANT and LeadDesk Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, LeadDesk Oyj 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 LeadDesk Oyj will offset losses from the drop in LeadDesk Oyj's long position.The idea behind ANT and LeadDesk Oyj 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.| LeadDesk Oyj vs. Reka Industrial Oyj | LeadDesk Oyj vs. Nordea Bank Abp | LeadDesk Oyj vs. Sotkamo Silver AB | LeadDesk Oyj vs. Finnair Oyj |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |