Correlation Between Anterix and Cars
Can any of the company-specific risk be diversified away by investing in both Anterix and Cars 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 Anterix and Cars into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anterix and Cars Inc, you can compare the effects of market volatilities on Anterix and Cars 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 Anterix with a short position of Cars. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anterix and Cars.
Diversification Opportunities for Anterix and Cars
Average diversification
The 3 months correlation between Anterix and Cars is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and Cars Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cars Inc and Anterix 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 Anterix are associated (or correlated) with Cars. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cars Inc has no effect on the direction of Anterix i.e., Anterix and Cars go up and down completely randomly.
Pair Corralation between Anterix and Cars
Given the investment horizon of 90 days Anterix is expected to under-perform the Cars. In addition to that, Anterix is 1.06 times more volatile than Cars Inc. It trades about -0.01 of its total potential returns per unit of risk. Cars Inc is currently generating about 0.11 per unit of volatility. If you would invest 1,735 in Cars Inc on September 3, 2024 and sell it today you would earn a total of 252.00 from holding Cars Inc or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anterix vs. Cars Inc
Performance |
| Timeline |
| Anterix |
| Cars Inc |
Anterix and Cars Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anterix and Cars
The main advantage of trading using opposite Anterix and Cars positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix position performs unexpectedly, Cars 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 Cars will offset losses from the drop in Cars' long position.| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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