Correlation Between Anterix and Naked Wines
Can any of the company-specific risk be diversified away by investing in both Anterix and Naked Wines 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 Naked Wines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anterix and Naked Wines plc, you can compare the effects of market volatilities on Anterix and Naked Wines 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 Naked Wines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anterix and Naked Wines.
Diversification Opportunities for Anterix and Naked Wines
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anterix and Naked is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and Naked Wines plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naked Wines plc 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 Naked Wines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naked Wines plc has no effect on the direction of Anterix i.e., Anterix and Naked Wines go up and down completely randomly.
Pair Corralation between Anterix and Naked Wines
Given the investment horizon of 90 days Anterix is expected to generate 0.63 times more return on investment than Naked Wines. However, Anterix is 1.58 times less risky than Naked Wines. It trades about 0.04 of its potential returns per unit of risk. Naked Wines plc is currently generating about -0.21 per unit of risk. If you would invest 3,047 in Anterix on October 20, 2024 and sell it today you would earn a total of 52.00 from holding Anterix or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Anterix vs. Naked Wines plc
Performance |
| Timeline |
| Anterix |
| Naked Wines plc |
Anterix and Naked Wines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anterix and Naked Wines
The main advantage of trading using opposite Anterix and Naked Wines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix position performs unexpectedly, Naked Wines 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 Naked Wines will offset losses from the drop in Naked Wines' long position.| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
| Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Naked Wines plc | Naked Wines vs. Crimson Wine | Naked Wines vs. Brown Forman |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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