Correlation Between Element Global and Anteris Technologies

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

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

Diversification Opportunities for Element Global and Anteris Technologies

-0.92

Correlation Coefficient

Element Global  Anteris Technologies

Pay attention - limited upside

The 3 months correlation between Element and Anteris is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Element Global and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Element Global 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 Element Global are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Element Global i.e., Element Global and Anteris Technologies go up and down completely randomly.

Pair Corralation between Element Global and Anteris Technologies

If you would invest  1,409  in Anteris Technologies on January 29, 2024 and sell it today you would earn a total of  61.00  from holding Anteris Technologies or generate 4.33% return on investment over 90 days.

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

Element Global  vs.  Anteris Technologies

Element Global

Risk-Adjusted Performance

0 of 100

Very Weak

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

Anteris Technologies

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Anteris Technologies are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Anteris Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Element Global and Anteris Technologies

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

The idea behind Element Global and Anteris Technologies 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.