Correlation Between ANT and Shattuck Labs
Can any of the company-specific risk be diversified away by investing in both ANT and Shattuck Labs 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 Shattuck Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Shattuck Labs, you can compare the effects of market volatilities on ANT and Shattuck Labs 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 Shattuck Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Shattuck Labs.
Diversification Opportunities for ANT and Shattuck Labs
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANT and Shattuck is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Shattuck Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shattuck Labs 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 Shattuck Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shattuck Labs has no effect on the direction of ANT i.e., ANT and Shattuck Labs go up and down completely randomly.
Pair Corralation between ANT and Shattuck Labs
Assuming the 90 days trading horizon ANT is expected to generate 3.56 times more return on investment than Shattuck Labs. However, ANT is 3.56 times more volatile than Shattuck Labs. It trades about 0.09 of its potential returns per unit of risk. Shattuck Labs is currently generating about 0.08 per unit of risk. If you would invest 147.00 in ANT on October 20, 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 | 90.91% |
| Values | Daily Returns |
ANT vs. Shattuck Labs
Performance |
| Timeline |
| ANT |
| Shattuck Labs |
ANT and Shattuck Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Shattuck Labs
The main advantage of trading using opposite ANT and Shattuck Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Shattuck Labs 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 Shattuck Labs will offset losses from the drop in Shattuck Labs' long position.The idea behind ANT and Shattuck Labs 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.| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics | Shattuck Labs vs. Foghorn Therapeutics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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