Correlation Between Caesarstone and Antelope Enterprise
Can any of the company-specific risk be diversified away by investing in both Caesarstone and Antelope Enterprise 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 Caesarstone and Antelope Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caesarstone and Antelope Enterprise Holdings, you can compare the effects of market volatilities on Caesarstone and Antelope Enterprise 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 Caesarstone with a short position of Antelope Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caesarstone and Antelope Enterprise.
Diversification Opportunities for Caesarstone and Antelope Enterprise
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caesarstone and Antelope is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Caesarstone and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and Caesarstone 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 Caesarstone are associated (or correlated) with Antelope Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antelope Enterprise has no effect on the direction of Caesarstone i.e., Caesarstone and Antelope Enterprise go up and down completely randomly.
Pair Corralation between Caesarstone and Antelope Enterprise
Given the investment horizon of 90 days Caesarstone is expected to generate 0.51 times more return on investment than Antelope Enterprise. However, Caesarstone is 1.96 times less risky than Antelope Enterprise. It trades about -0.04 of its potential returns per unit of risk. Antelope Enterprise Holdings is currently generating about -0.37 per unit of risk. If you would invest 456.00 in Caesarstone on August 30, 2024 and sell it today you would lose (32.00) from holding Caesarstone or give up 7.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caesarstone vs. Antelope Enterprise Holdings
Performance |
| Timeline |
| Caesarstone |
| Antelope Enterprise |
Caesarstone and Antelope Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caesarstone and Antelope Enterprise
The main advantage of trading using opposite Caesarstone and Antelope Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caesarstone position performs unexpectedly, Antelope Enterprise 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 Antelope Enterprise will offset losses from the drop in Antelope Enterprise's long position.| Caesarstone vs. Gibraltar Industries | Caesarstone vs. Quanex Building Products | Caesarstone vs. Jeld Wen Holding | Caesarstone vs. Perma Pipe International Holdings |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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