Correlation Between Perma Pipe and Antelope Enterprise
Can any of the company-specific risk be diversified away by investing in both Perma Pipe 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 Perma Pipe and Antelope Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perma Pipe International Holdings and Antelope Enterprise Holdings, you can compare the effects of market volatilities on Perma Pipe 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 Perma Pipe with a short position of Antelope Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perma Pipe and Antelope Enterprise.
Diversification Opportunities for Perma Pipe and Antelope Enterprise
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Perma and Antelope is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Perma Pipe International Holdi and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and Perma Pipe 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 Perma Pipe International Holdings 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 Perma Pipe i.e., Perma Pipe and Antelope Enterprise go up and down completely randomly.
Pair Corralation between Perma Pipe and Antelope Enterprise
Given the investment horizon of 90 days Perma Pipe International Holdings is expected to generate 0.5 times more return on investment than Antelope Enterprise. However, Perma Pipe International Holdings is 2.0 times less risky than Antelope Enterprise. It trades about 0.14 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 1,298 in Perma Pipe International Holdings on August 30, 2024 and sell it today you would earn a total of 251.00 from holding Perma Pipe International Holdings or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perma Pipe International Holdi vs. Antelope Enterprise Holdings
Performance |
| Timeline |
| Perma Pipe Internati |
| Antelope Enterprise |
Perma Pipe and Antelope Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perma Pipe and Antelope Enterprise
The main advantage of trading using opposite Perma Pipe and Antelope Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perma Pipe 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.| Perma Pipe vs. Gibraltar Industries | Perma Pipe vs. Quanex Building Products | Perma Pipe vs. Jeld Wen Holding | Perma Pipe vs. Interface |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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