Correlation Between Antelope Enterprise and Intelligent Living

Can any of the company-specific risk be diversified away by investing in both Antelope Enterprise and Intelligent Living 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 Antelope Enterprise and Intelligent Living into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Antelope Enterprise Holdings and Intelligent Living Application, you can compare the effects of market volatilities on Antelope Enterprise and Intelligent Living 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 Antelope Enterprise with a short position of Intelligent Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antelope Enterprise and Intelligent Living.

Diversification Opportunities for Antelope Enterprise and Intelligent Living

-0.82

Correlation Coefficient

Antelope Enterprise  Intelligent Living

Pay attention - limited upside

The 3 months correlation between Antelope and Intelligent is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and Intelligent Living Application in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Living and Antelope Enterprise 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 Antelope Enterprise Holdings are associated (or correlated) with Intelligent Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Living has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and Intelligent Living go up and down completely randomly.

Pair Corralation between Antelope Enterprise and Intelligent Living

Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the Intelligent Living. In addition to that, Antelope Enterprise is 1.05 times more volatile than Intelligent Living Application. It trades about -0.02 of its total potential returns per unit of risk. Intelligent Living Application is currently generating about 0.01 per unit of volatility. If you would invest  235.00  in Intelligent Living Application on July 11, 2024 and sell it today you would lose (131.00) from holding Intelligent Living Application or give up 55.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Antelope Enterprise Holdings  vs.  Intelligent Living Application

Antelope Enterprise

Risk-Adjusted Performance

0 of 100

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 November 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Intelligent Living

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Living Application are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Intelligent Living reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Antelope Enterprise and Intelligent Living

The main advantage of trading using opposite Antelope Enterprise and Intelligent Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antelope Enterprise position performs unexpectedly, Intelligent Living 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 Intelligent Living will offset losses from the drop in Intelligent Living's long position.

The idea behind Antelope Enterprise Holdings and Intelligent Living Application 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.