Correlation Between ANT and CoinSmart Financial
Can any of the company-specific risk be diversified away by investing in both ANT and CoinSmart Financial 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 CoinSmart Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and CoinSmart Financial, you can compare the effects of market volatilities on ANT and CoinSmart Financial 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 CoinSmart Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and CoinSmart Financial.
Diversification Opportunities for ANT and CoinSmart Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ANT and CoinSmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ANT and CoinSmart Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinSmart Financial 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 CoinSmart Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinSmart Financial has no effect on the direction of ANT i.e., ANT and CoinSmart Financial go up and down completely randomly.
Pair Corralation between ANT and CoinSmart Financial
Assuming the 90 days trading horizon ANT is expected to generate 17.12 times more return on investment than CoinSmart Financial. However, ANT is 17.12 times more volatile than CoinSmart Financial. It trades about 0.1 of its potential returns per unit of risk. CoinSmart Financial is currently generating about 0.06 per unit of risk. If you would invest 284.00 in ANT on October 31, 2024 and sell it today you would lose (137.00) from holding ANT or give up 48.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 60.12% |
| Values | Daily Returns |
ANT vs. CoinSmart Financial
Performance |
| Timeline |
| ANT |
| CoinSmart Financial |
ANT and CoinSmart Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and CoinSmart Financial
The main advantage of trading using opposite ANT and CoinSmart Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, CoinSmart Financial 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 CoinSmart Financial will offset losses from the drop in CoinSmart Financial's long position.The idea behind ANT and CoinSmart Financial 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.| CoinSmart Financial vs. Champion Iron | CoinSmart Financial vs. Bird Construction | CoinSmart Financial vs. Gfl Environmental Holdings | CoinSmart Financial vs. Mako Mining Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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