Correlation Between ANT and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both ANT and Barclays Capital 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 Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Barclays Capital, you can compare the effects of market volatilities on ANT and Barclays Capital 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Barclays Capital.
Diversification Opportunities for ANT and Barclays Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANT and Barclays is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of ANT i.e., ANT and Barclays Capital go up and down completely randomly.
Pair Corralation between ANT and Barclays Capital
Assuming the 90 days trading horizon ANT is expected to generate 32.27 times more return on investment than Barclays Capital. However, ANT is 32.27 times more volatile than Barclays Capital. It trades about 0.1 of its potential returns per unit of risk. Barclays Capital 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 | Flat |
| Strength | Insignificant |
| Accuracy | 36.24% |
| Values | Daily Returns |
ANT vs. Barclays Capital
Performance |
| Timeline |
| ANT |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ANT and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Barclays Capital
The main advantage of trading using opposite ANT and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.The idea behind ANT and Barclays Capital 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.| Barclays Capital vs. United States Oil | Barclays Capital vs. Invesco DB Oil | Barclays Capital vs. ProShares Ultra Bloomberg | Barclays Capital vs. United States Natural |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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