Correlation Between ANT and SEPC
Can any of the company-specific risk be diversified away by investing in both ANT and SEPC 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 SEPC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and SEPC Limited, you can compare the effects of market volatilities on ANT and SEPC 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 SEPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and SEPC.
Diversification Opportunities for ANT and SEPC
Weak diversification
The 3 months correlation between ANT and SEPC is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ANT and SEPC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEPC Limited 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 SEPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEPC Limited has no effect on the direction of ANT i.e., ANT and SEPC go up and down completely randomly.
Pair Corralation between ANT and SEPC
Assuming the 90 days trading horizon ANT is expected to generate 6.06 times more return on investment than SEPC. However, ANT is 6.06 times more volatile than SEPC Limited. It trades about 0.09 of its potential returns per unit of risk. SEPC Limited is currently generating about -0.27 per unit of risk. If you would invest 147.00 in ANT on October 25, 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 | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
ANT vs. SEPC Limited
Performance |
| Timeline |
| ANT |
| SEPC Limited |
ANT and SEPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and SEPC
The main advantage of trading using opposite ANT and SEPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, SEPC 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 SEPC will offset losses from the drop in SEPC's long position.The idea behind ANT and SEPC Limited 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.| SEPC vs. Kamat Hotels Limited | SEPC vs. Juniper Hotels | SEPC vs. JGCHEMICALS LIMITED | SEPC vs. Omkar Speciality Chemicals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |