Correlation Between ANT and Advanced Health
Can any of the company-specific risk be diversified away by investing in both ANT and Advanced Health 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 Advanced Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Advanced Health Intelligence, you can compare the effects of market volatilities on ANT and Advanced Health 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 Advanced Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Advanced Health.
Diversification Opportunities for ANT and Advanced Health
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANT and Advanced is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Advanced Health Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Health Inte 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 Advanced Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Health Inte has no effect on the direction of ANT i.e., ANT and Advanced Health go up and down completely randomly.
Pair Corralation between ANT and Advanced Health
Assuming the 90 days trading horizon ANT is expected to generate 21.61 times more return on investment than Advanced Health. However, ANT is 21.61 times more volatile than Advanced Health Intelligence. It trades about 0.16 of its potential returns per unit of risk. Advanced Health Intelligence is currently generating about -0.03 per unit of risk. If you would invest 610.00 in ANT on November 2, 2024 and sell it today you would lose (463.00) from holding ANT or give up 75.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.26% |
| Values | Daily Returns |
ANT vs. Advanced Health Intelligence
Performance |
| Timeline |
| ANT |
| Advanced Health Inte |
ANT and Advanced Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Advanced Health
The main advantage of trading using opposite ANT and Advanced Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Advanced Health 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 Advanced Health will offset losses from the drop in Advanced Health's long position.The idea behind ANT and Advanced Health Intelligence 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.| Advanced Health vs. Embotelladora Andina SA | Advanced Health vs. Embotelladora Andina SA | Advanced Health vs. Apple Rush | Advanced Health vs. Alkame Holdings |
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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