Correlation Between ANT and OCUP Old
Can any of the company-specific risk be diversified away by investing in both ANT and OCUP Old 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 OCUP Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and OCUP Old, you can compare the effects of market volatilities on ANT and OCUP Old 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 OCUP Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and OCUP Old.
Diversification Opportunities for ANT and OCUP Old
Good diversification
The 3 months correlation between ANT and OCUP is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ANT and OCUP Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCUP Old 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 OCUP Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCUP Old has no effect on the direction of ANT i.e., ANT and OCUP Old go up and down completely randomly.
Pair Corralation between ANT and OCUP Old
Assuming the 90 days trading horizon ANT is expected to generate 12.7 times more return on investment than OCUP Old. However, ANT is 12.7 times more volatile than OCUP Old. It trades about 0.1 of its potential returns per unit of risk. OCUP Old is currently generating about -0.03 per unit of risk. If you would invest 288.00 in ANT on October 12, 2024 and sell it today you would lose (141.00) from holding ANT or give up 48.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.89% |
| Values | Daily Returns |
ANT vs. OCUP Old
Performance |
| Timeline |
| ANT |
| OCUP Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ANT and OCUP Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and OCUP Old
The main advantage of trading using opposite ANT and OCUP Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, OCUP Old 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 OCUP Old will offset losses from the drop in OCUP Old's long position.The idea behind ANT and OCUP Old 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.| OCUP Old vs. Reviva Pharmaceuticals Holdings | OCUP Old vs. Protalix Biotherapeutics | OCUP Old vs. Eyepoint Pharmaceuticals | OCUP Old vs. Sellas Life Sciences |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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