Correlation Between ANT and SPDR MSCI
Can any of the company-specific risk be diversified away by investing in both ANT and SPDR MSCI 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 SPDR MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and SPDR MSCI Europe, you can compare the effects of market volatilities on ANT and SPDR MSCI 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 SPDR MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and SPDR MSCI.
Diversification Opportunities for ANT and SPDR MSCI
Significant diversification
The 3 months correlation between ANT and SPDR is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding ANT and SPDR MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR MSCI Europe 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 SPDR MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR MSCI Europe has no effect on the direction of ANT i.e., ANT and SPDR MSCI go up and down completely randomly.
Pair Corralation between ANT and SPDR MSCI
Assuming the 90 days trading horizon ANT is expected to generate 38.61 times more return on investment than SPDR MSCI. However, ANT is 38.61 times more volatile than SPDR MSCI Europe. It trades about 0.1 of its potential returns per unit of risk. SPDR MSCI Europe is currently generating about 0.04 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 | 60.45% |
| Values | Daily Returns |
ANT vs. SPDR MSCI Europe
Performance |
| Timeline |
| ANT |
| SPDR MSCI Europe |
ANT and SPDR MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and SPDR MSCI
The main advantage of trading using opposite ANT and SPDR MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, SPDR MSCI 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 SPDR MSCI will offset losses from the drop in SPDR MSCI's long position.The idea behind ANT and SPDR MSCI Europe 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.| SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR SP Utilities | SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR MSCI EM |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |