Correlation Between Aaon and Antelope Enterprise

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Can any of the company-specific risk be diversified away by investing in both Aaon and Antelope Enterprise 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 Aaon and Antelope Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aaon Inc and Antelope Enterprise Hldg, you can compare the effects of market volatilities on Aaon and Antelope Enterprise 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 Aaon with a short position of Antelope Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aaon and Antelope Enterprise.

Diversification Opportunities for Aaon and Antelope Enterprise

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Aaon and Antelope is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aaon Inc and Antelope Enterprise Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise Hldg and Aaon 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 Aaon Inc are associated (or correlated) with Antelope Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antelope Enterprise Hldg has no effect on the direction of Aaon i.e., Aaon and Antelope Enterprise go up and down completely randomly.

Pair Corralation between Aaon and Antelope Enterprise

Given the investment horizon of 90 days Aaon Inc is expected to generate 0.24 times more return on investment than Antelope Enterprise. However, Aaon Inc is 4.1 times less risky than Antelope Enterprise. It trades about 0.35 of its potential returns per unit of risk. Antelope Enterprise Hldg is currently generating about 0.0 per unit of risk. If you would invest  5,431  in Aaon Inc on May 20, 2022 and sell it today you would earn a total of  861.00  from holding Aaon Inc or generate 15.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

Aaon Inc  vs.  Antelope Enterprise Hldg

 Performance (%) 
       Timeline  
Aaon Inc 
Aaon Performance
13 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Aaon Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite sluggish basic indicators, Aaon disclosed solid returns over the last few months and may actually be approaching a breakup point.

Aaon Price Channel

Antelope Enterprise Hldg 
Antelope Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Antelope Enterprise Hldg are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical indicators, Antelope Enterprise revealed solid returns over the last few months and may actually be approaching a breakup point.

Antelope Price Channel

Aaon and Antelope Enterprise Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aaon and Antelope Enterprise

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

Antelope Enterprise Hldg

Pair trading matchups for Antelope Enterprise

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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