Correlation Between ANT and Rolling Optics
Can any of the company-specific risk be diversified away by investing in both ANT and Rolling Optics 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 Rolling Optics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Rolling Optics Holding, you can compare the effects of market volatilities on ANT and Rolling Optics 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 Rolling Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Rolling Optics.
Diversification Opportunities for ANT and Rolling Optics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and Rolling is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Rolling Optics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rolling Optics Holding 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 Rolling Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rolling Optics Holding has no effect on the direction of ANT i.e., ANT and Rolling Optics go up and down completely randomly.
Pair Corralation between ANT and Rolling Optics
Assuming the 90 days trading horizon ANT is expected to generate 10.98 times more return on investment than Rolling Optics. However, ANT is 10.98 times more volatile than Rolling Optics Holding. It trades about 0.1 of its potential returns per unit of risk. Rolling Optics Holding is currently generating about 0.01 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.32% |
| Values | Daily Returns |
ANT vs. Rolling Optics Holding
Performance |
| Timeline |
| ANT |
| Rolling Optics Holding |
ANT and Rolling Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Rolling Optics
The main advantage of trading using opposite ANT and Rolling Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Rolling Optics 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 Rolling Optics will offset losses from the drop in Rolling Optics' long position.The idea behind ANT and Rolling Optics Holding 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.| Rolling Optics vs. Zwipe AS | Rolling Optics vs. Zaplox AB | Rolling Optics vs. XMReality AB | Rolling Optics vs. Ratos AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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