Correlation Between ANT and Nasdaq-100 Profund
Can any of the company-specific risk be diversified away by investing in both ANT and Nasdaq-100 Profund 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 Nasdaq-100 Profund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Nasdaq 100 Profund Nasdaq 100, you can compare the effects of market volatilities on ANT and Nasdaq-100 Profund 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 Nasdaq-100 Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Nasdaq-100 Profund.
Diversification Opportunities for ANT and Nasdaq-100 Profund
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANT and Nasdaq-100 is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Nasdaq 100 Profund Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Profund 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 Nasdaq-100 Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Profund has no effect on the direction of ANT i.e., ANT and Nasdaq-100 Profund go up and down completely randomly.
Pair Corralation between ANT and Nasdaq-100 Profund
Assuming the 90 days trading horizon ANT is expected to generate 13.94 times more return on investment than Nasdaq-100 Profund. However, ANT is 13.94 times more volatile than Nasdaq 100 Profund Nasdaq 100. It trades about 0.08 of its potential returns per unit of risk. Nasdaq 100 Profund Nasdaq 100 is currently generating about 0.1 per unit of risk. If you would invest 147.00 in ANT on November 2, 2024 and sell it today you would earn a total of 0.00 from holding ANT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
ANT vs. Nasdaq 100 Profund Nasdaq 100
Performance |
| Timeline |
| ANT |
| Nasdaq 100 Profund |
ANT and Nasdaq-100 Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Nasdaq-100 Profund
The main advantage of trading using opposite ANT and Nasdaq-100 Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Nasdaq-100 Profund 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 Nasdaq-100 Profund will offset losses from the drop in Nasdaq-100 Profund's long position.The idea behind ANT and Nasdaq 100 Profund Nasdaq 100 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.| Nasdaq-100 Profund vs. Bull Profund Investor | Nasdaq-100 Profund vs. Small Cap Profund Small Cap | Nasdaq-100 Profund vs. Mid Cap Profund Mid Cap | Nasdaq-100 Profund vs. Small Cap Growth Profund |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |