Correlation Between ANT and Saint Jean
Can any of the company-specific risk be diversified away by investing in both ANT and Saint Jean 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 Saint Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Saint Jean Carbon, you can compare the effects of market volatilities on ANT and Saint Jean 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 Saint Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Saint Jean.
Diversification Opportunities for ANT and Saint Jean
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANT and Saint is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Saint Jean Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saint Jean Carbon 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 Saint Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saint Jean Carbon has no effect on the direction of ANT i.e., ANT and Saint Jean go up and down completely randomly.
Pair Corralation between ANT and Saint Jean
Assuming the 90 days trading horizon ANT is expected to generate 5.18 times more return on investment than Saint Jean. However, ANT is 5.18 times more volatile than Saint Jean Carbon. It trades about 0.1 of its potential returns per unit of risk. Saint Jean Carbon 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 | 60.2% |
| Values | Daily Returns |
ANT vs. Saint Jean Carbon
Performance |
| Timeline |
| ANT |
| Saint Jean Carbon |
ANT and Saint Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Saint Jean
The main advantage of trading using opposite ANT and Saint Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Saint Jean 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 Saint Jean will offset losses from the drop in Saint Jean's long position.The idea behind ANT and Saint Jean Carbon 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.| Saint Jean vs. ZincX Resources Corp | Saint Jean vs. Mundoro Capital | Saint Jean vs. Strategic Resources | Saint Jean vs. Norra Metals 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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