Correlation Between Mantle and ANT
Can any of the company-specific risk be diversified away by investing in both Mantle and ANT 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 Mantle and ANT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mantle and ANT, you can compare the effects of market volatilities on Mantle and ANT 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 Mantle with a short position of ANT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mantle and ANT.
Diversification Opportunities for Mantle and ANT
Very good diversification
The 3 months correlation between Mantle and ANT is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mantle and ANT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANT and Mantle 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 Mantle are associated (or correlated) with ANT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANT has no effect on the direction of Mantle i.e., Mantle and ANT go up and down completely randomly.
Pair Corralation between Mantle and ANT
Assuming the 90 days trading horizon Mantle is expected to generate 31.14 times less return on investment than ANT. But when comparing it to its historical volatility, Mantle is 17.6 times less risky than ANT. It trades about 0.08 of its potential returns per unit of risk. ANT is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 833.00 in ANT on October 25, 2024 and sell it today you would lose (686.00) from holding ANT or give up 82.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mantle vs. ANT
Performance |
| Timeline |
| Mantle |
| ANT |
Mantle and ANT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mantle and ANT
The main advantage of trading using opposite Mantle and ANT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mantle position performs unexpectedly, ANT 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 ANT will offset losses from the drop in ANT's long position.The idea behind Mantle and ANT 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.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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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