Correlation Between Trane Technologies and Antelope Enterprise

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Can any of the company-specific risk be diversified away by investing in both Trane Technologies 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 Trane Technologies and Antelope Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trane Technologies plc and Antelope Enterprise Holdings, you can compare the effects of market volatilities on Trane Technologies 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 Trane Technologies with a short position of Antelope Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trane Technologies and Antelope Enterprise.

Diversification Opportunities for Trane Technologies and Antelope Enterprise

-0.85
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Trane and Antelope is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Trane Technologies plc and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and Trane Technologies 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 Trane Technologies plc 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 Trane Technologies i.e., Trane Technologies and Antelope Enterprise go up and down completely randomly.

Pair Corralation between Trane Technologies and Antelope Enterprise

Allowing for the 90-day total investment horizon Trane Technologies plc is expected to generate 0.22 times more return on investment than Antelope Enterprise. However, Trane Technologies plc is 4.61 times less risky than Antelope Enterprise. It trades about 0.12 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  38,873  in Trane Technologies plc on August 30, 2024 and sell it today you would earn a total of  2,736  from holding Trane Technologies plc or generate 7.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Trane Technologies plc  vs.  Antelope Enterprise Holdings

 Performance 
       Timeline  
Trane Technologies plc 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Trane Technologies plc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Trane Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.
Antelope Enterprise 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Antelope Enterprise Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Trane Technologies and Antelope Enterprise Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Trane Technologies and Antelope Enterprise

The main advantage of trading using opposite Trane Technologies and Antelope Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trane Technologies 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.
The idea behind Trane Technologies plc and Antelope Enterprise Holdings 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.
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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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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