Correlation Between Where Food and Anterix

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

By analyzing existing cross correlation between Where Food Comes and Anterix, you can compare the effects of market volatilities on Where Food and Anterix 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 Where Food with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and Anterix.

Diversification Opportunities for Where Food and Anterix

-0.39

Correlation Coefficient

Where Food  Anterix

Very good diversification

The 3 months correlation between Where and Anterix is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Where Food 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 Where Food Comes are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Where Food i.e., Where Food and Anterix go up and down completely randomly.

Pair Corralation between Where Food and Anterix

Given the investment horizon of 90 days Where Food Comes is expected to generate 0.82 times more return on investment than Anterix. However, Where Food Comes is 1.22 times less risky than Anterix. It trades about 0.11 of its potential returns per unit of risk. Anterix is currently generating about -0.11 per unit of risk. If you would invest  1,090  in Where Food Comes on September 23, 2024 and sell it today you would earn a total of  155.00  from holding Where Food Comes or generate 14.22% return on investment over 90 days.

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

Where Food Comes  vs.  Anterix

Where Food Comes

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Where Food reported solid returns over the last few months and may actually be approaching a breakup point.

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Where Food and Anterix

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

The idea behind Where Food Comes and Anterix 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .