Correlation Between ANT and Xeros Technology
Can any of the company-specific risk be diversified away by investing in both ANT and Xeros Technology 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 Xeros Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Xeros Technology Group, you can compare the effects of market volatilities on ANT and Xeros Technology 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 Xeros Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Xeros Technology.
Diversification Opportunities for ANT and Xeros Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANT and Xeros is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Xeros Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xeros Technology 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 Xeros Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xeros Technology has no effect on the direction of ANT i.e., ANT and Xeros Technology go up and down completely randomly.
Pair Corralation between ANT and Xeros Technology
Assuming the 90 days trading horizon ANT is expected to generate 2.79 times more return on investment than Xeros Technology. However, ANT is 2.79 times more volatile than Xeros Technology Group. It trades about 0.09 of its potential returns per unit of risk. Xeros Technology Group is currently generating about 0.18 per unit of risk. If you would invest 147.00 in ANT on October 17, 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 | 90.48% |
| Values | Daily Returns |
ANT vs. Xeros Technology Group
Performance |
| Timeline |
| ANT |
| Xeros Technology |
ANT and Xeros Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Xeros Technology
The main advantage of trading using opposite ANT and Xeros Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Xeros Technology 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 Xeros Technology will offset losses from the drop in Xeros Technology's long position.The idea behind ANT and Xeros Technology Group 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.| Xeros Technology vs. Taiwan Semiconductor Manufacturing | Xeros Technology vs. XLMedia PLC | Xeros Technology vs. Zinc Media Group | Xeros Technology vs. Liberty Media 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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