Correlation Between ANT and Wesmark West
Can any of the company-specific risk be diversified away by investing in both ANT and Wesmark West 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 Wesmark West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Wesmark West Virginia, you can compare the effects of market volatilities on ANT and Wesmark West 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 Wesmark West. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Wesmark West.
Diversification Opportunities for ANT and Wesmark West
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and Wesmark is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Wesmark West Virginia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesmark West Virginia 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 Wesmark West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesmark West Virginia has no effect on the direction of ANT i.e., ANT and Wesmark West go up and down completely randomly.
Pair Corralation between ANT and Wesmark West
Assuming the 90 days trading horizon ANT is expected to generate 60.58 times more return on investment than Wesmark West. However, ANT is 60.58 times more volatile than Wesmark West Virginia. It trades about 0.1 of its potential returns per unit of risk. Wesmark West Virginia is currently generating about -0.08 per unit of risk. If you would invest 130.00 in ANT on October 20, 2024 and sell it today you would earn a total of 17.00 from holding ANT or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.18% |
| Values | Daily Returns |
ANT vs. Wesmark West Virginia
Performance |
| Timeline |
| ANT |
| Wesmark West Virginia |
ANT and Wesmark West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Wesmark West
The main advantage of trading using opposite ANT and Wesmark West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Wesmark West 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 Wesmark West will offset losses from the drop in Wesmark West's long position.The idea behind ANT and Wesmark West Virginia 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.| Wesmark West vs. Wesmark Government Bond | Wesmark West vs. Wesmark Growth Fund | Wesmark West vs. Wesmark Balanced Fund | Wesmark West vs. Wesmark Small Pany |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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