Correlation Between ANT and Great West
Can any of the company-specific risk be diversified away by investing in both ANT and Great West 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 Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Great West Goldman Sachs, you can compare the effects of market volatilities on ANT and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Great West.
Diversification Opportunities for ANT and Great West
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and Great is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Great West Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Goldman 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Goldman has no effect on the direction of ANT i.e., ANT and Great West go up and down completely randomly.
Pair Corralation between ANT and Great West
Assuming the 90 days trading horizon ANT is expected to generate 10.63 times more return on investment than Great West. However, ANT is 10.63 times more volatile than Great West Goldman Sachs. It trades about 0.08 of its potential returns per unit of risk. Great West Goldman Sachs is currently generating about 0.03 per unit of risk. If you would invest 401.00 in ANT on November 1, 2024 and sell it today you would lose (254.00) from holding ANT or give up 63.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.19% |
| Values | Daily Returns |
ANT vs. Great West Goldman Sachs
Performance |
| Timeline |
| ANT |
| Great West Goldman |
ANT and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Great West
The main advantage of trading using opposite ANT and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.The idea behind ANT and Great West Goldman Sachs 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.| Great West vs. Doubleline Core Fixed | Great West vs. Calvert International Equity | Great West vs. Enhanced Fixed Income | Great West vs. Ab Servative Wealth |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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