Correlation Between ANT and Harvest Eli
Can any of the company-specific risk be diversified away by investing in both ANT and Harvest Eli 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 Harvest Eli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Harvest Eli Lilly, you can compare the effects of market volatilities on ANT and Harvest Eli 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 Harvest Eli. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Harvest Eli.
Diversification Opportunities for ANT and Harvest Eli
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANT and Harvest is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Harvest Eli Lilly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Eli Lilly 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 Harvest Eli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Eli Lilly has no effect on the direction of ANT i.e., ANT and Harvest Eli go up and down completely randomly.
Pair Corralation between ANT and Harvest Eli
Assuming the 90 days trading horizon ANT is expected to generate 10.43 times more return on investment than Harvest Eli. However, ANT is 10.43 times more volatile than Harvest Eli Lilly. It trades about 0.1 of its potential returns per unit of risk. Harvest Eli Lilly is currently generating about 0.01 per unit of risk. If you would invest 127.00 in ANT on November 2, 2024 and sell it today you would earn a total of 20.00 from holding ANT or generate 15.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ANT vs. Harvest Eli Lilly
Performance |
| Timeline |
| ANT |
| Harvest Eli Lilly |
ANT and Harvest Eli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Harvest Eli
The main advantage of trading using opposite ANT and Harvest Eli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Harvest Eli 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 Harvest Eli will offset losses from the drop in Harvest Eli's long position.The idea behind ANT and Harvest Eli Lilly 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.| Harvest Eli vs. Harvest Premium Yield | Harvest Eli vs. Harvest Balanced Income | Harvest Eli vs. Harvest Diversified High | Harvest Eli vs. Harvest Energy Leaders |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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