Correlation Between Antelope Enterprise and FMC

Can any of the company-specific risk be diversified away by investing in both Antelope Enterprise and FMC 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 FMC 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 FMC Corporation, you can compare the effects of market volatilities on Antelope Enterprise and FMC 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 FMC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antelope Enterprise and FMC.

Diversification Opportunities for Antelope Enterprise and FMC

-0.44

Correlation Coefficient

Antelope Enterprise  FMC

Very good diversification

The 3 months correlation between Antelope and FMC is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and FMC Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMC Corporation 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 FMC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMC Corporation has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and FMC go up and down completely randomly.

Pair Corralation between Antelope Enterprise and FMC

Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to generate 2.04 times more return on investment than FMC. However, Antelope Enterprise is 2.04 times more volatile than FMC Corporation. It trades about 0.07 of its potential returns per unit of risk. FMC Corporation is currently generating about -0.09 per unit of risk. If you would invest  185.00  in Antelope Enterprise Holdings on January 25, 2024 and sell it today you would earn a total of  10.00  from holding Antelope Enterprise Holdings or generate 5.41% return on investment over 90 days.

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

Antelope Enterprise Holdings  vs.  FMC Corp.

Antelope Enterprise

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Antelope Enterprise Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent technical indicators, Antelope Enterprise disclosed solid returns over the last few months and may actually be approaching a breakup point.

FMC Corporation

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FMC Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile primary indicators, FMC may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Antelope Enterprise and FMC

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

The idea behind Antelope Enterprise Holdings and FMC Corporation 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.