Correlation Between ANT and Santen Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both ANT and Santen Pharmaceutical 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 Santen Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Santen Pharmaceutical Co, you can compare the effects of market volatilities on ANT and Santen Pharmaceutical 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 Santen Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Santen Pharmaceutical.
Diversification Opportunities for ANT and Santen Pharmaceutical
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANT and Santen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Santen Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santen Pharmaceutical 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 Santen Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santen Pharmaceutical has no effect on the direction of ANT i.e., ANT and Santen Pharmaceutical go up and down completely randomly.
Pair Corralation between ANT and Santen Pharmaceutical
Assuming the 90 days trading horizon ANT is expected to generate 19.32 times more return on investment than Santen Pharmaceutical. However, ANT is 19.32 times more volatile than Santen Pharmaceutical Co. It trades about 0.1 of its potential returns per unit of risk. Santen Pharmaceutical Co is currently generating about 0.05 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 Together |
| Strength | Insignificant |
| Accuracy | 85.88% |
| Values | Daily Returns |
ANT vs. Santen Pharmaceutical Co
Performance |
| Timeline |
| ANT |
| Santen Pharmaceutical |
ANT and Santen Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Santen Pharmaceutical
The main advantage of trading using opposite ANT and Santen Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Santen Pharmaceutical 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 Santen Pharmaceutical will offset losses from the drop in Santen Pharmaceutical's long position.The idea behind ANT and Santen Pharmaceutical 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.| Santen Pharmaceutical vs. Ono Pharmaceutical Co | Santen Pharmaceutical vs. GSK plc | Santen Pharmaceutical vs. Grifols SA ADR | Santen Pharmaceutical vs. Pfizer Inc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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