Correlation Between ANT and Shionogi
Can any of the company-specific risk be diversified away by investing in both ANT and Shionogi 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 Shionogi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Shionogi Co, you can compare the effects of market volatilities on ANT and Shionogi 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 Shionogi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Shionogi.
Diversification Opportunities for ANT and Shionogi
Average diversification
The 3 months correlation between ANT and Shionogi is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Shionogi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shionogi 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 Shionogi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shionogi has no effect on the direction of ANT i.e., ANT and Shionogi go up and down completely randomly.
Pair Corralation between ANT and Shionogi
Assuming the 90 days trading horizon ANT is expected to generate 2.38 times less return on investment than Shionogi. But when comparing it to its historical volatility, ANT is 1.16 times less risky than Shionogi. It trades about 0.1 of its potential returns per unit of risk. Shionogi Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,418 in Shionogi Co on November 2, 2024 and sell it today you would earn a total of 1.00 from holding Shionogi Co or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.42% |
| Values | Daily Returns |
ANT vs. Shionogi Co
Performance |
| Timeline |
| ANT |
| Shionogi |
ANT and Shionogi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Shionogi
The main advantage of trading using opposite ANT and Shionogi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Shionogi 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 Shionogi will offset losses from the drop in Shionogi's long position.The idea behind ANT and Shionogi Co 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.| Shionogi vs. Pacira BioSciences, | Shionogi vs. Shionogi Co Ltd | Shionogi vs. Sunshine Biopharma | Shionogi vs. China SXT Pharmaceuticals |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |