Correlation Between ANT and TC Energy
Can any of the company-specific risk be diversified away by investing in both ANT and TC Energy 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 TC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and TC Energy Corp, you can compare the effects of market volatilities on ANT and TC Energy 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 TC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and TC Energy.
Diversification Opportunities for ANT and TC Energy
Good diversification
The 3 months correlation between ANT and TRP-PC is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ANT and TC Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Energy Corp 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 TC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Energy Corp has no effect on the direction of ANT i.e., ANT and TC Energy go up and down completely randomly.
Pair Corralation between ANT and TC Energy
Assuming the 90 days trading horizon ANT is expected to generate 164.66 times more return on investment than TC Energy. However, ANT is 164.66 times more volatile than TC Energy Corp. It trades about 0.21 of its potential returns per unit of risk. TC Energy Corp is currently generating about 0.23 per unit of risk. If you would invest 147.00 in ANT on October 12, 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 Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ANT vs. TC Energy Corp
Performance |
| Timeline |
| ANT |
| TC Energy Corp |
ANT and TC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and TC Energy
The main advantage of trading using opposite ANT and TC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, TC Energy 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 TC Energy will offset losses from the drop in TC Energy's long position.The idea behind ANT and TC Energy Corp 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.| TC Energy vs. Manulife Financial Corp | TC Energy vs. Plaza Retail REIT | TC Energy vs. Canso Credit Trust | TC Energy vs. Profound Medical 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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