Correlation Between Aptus Defined and Anfield Equity

Can any of the company-specific risk be diversified away by investing in both Aptus Defined and Anfield Equity 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 Aptus Defined and Anfield Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aptus Defined Risk and Anfield Equity Sector, you can compare the effects of market volatilities on Aptus Defined and Anfield Equity 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 Aptus Defined with a short position of Anfield Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Defined and Anfield Equity.

Diversification Opportunities for Aptus Defined and Anfield Equity

0.95

Correlation Coefficient

Aptus Defined  Anfield Equity

Almost no diversification

The 3 months correlation between Aptus and Anfield is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Defined Risk and Anfield Equity Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Equity Sector and Aptus Defined 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 Aptus Defined Risk are associated (or correlated) with Anfield Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Equity Sector has no effect on the direction of Aptus Defined i.e., Aptus Defined and Anfield Equity go up and down completely randomly.

Pair Corralation between Aptus Defined and Anfield Equity

Given the investment horizon of 90 days Aptus Defined is expected to generate 1.89 times less return on investment than Anfield Equity. But when comparing it to its historical volatility, Aptus Defined Risk is 1.51 times less risky than Anfield Equity. It trades about 0.17 of its potential returns per unit of risk. Anfield Equity Sector is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,703  in Anfield Equity Sector on May 5, 2025 and sell it today you would earn a total of  193.00  from holding Anfield Equity Sector or generate 11.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Aptus Defined Risk  vs.  Anfield Equity Sector

Aptus Defined Risk

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aptus Defined Risk are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Aptus Defined is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Anfield Equity Sector

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Equity Sector are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Anfield Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Aptus Defined and Anfield Equity

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

The idea behind Aptus Defined Risk and Anfield Equity Sector 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.