Correlation Between AnaptysBio and GH Research
Can any of the company-specific risk be diversified away by investing in both AnaptysBio and GH Research 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 AnaptysBio and GH Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AnaptysBio and GH Research PLC, you can compare the effects of market volatilities on AnaptysBio and GH Research 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 AnaptysBio with a short position of GH Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of AnaptysBio and GH Research.
Diversification Opportunities for AnaptysBio and GH Research
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AnaptysBio and GHRS is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AnaptysBio and GH Research PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GH Research PLC and AnaptysBio 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 AnaptysBio are associated (or correlated) with GH Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GH Research PLC has no effect on the direction of AnaptysBio i.e., AnaptysBio and GH Research go up and down completely randomly.
Pair Corralation between AnaptysBio and GH Research
Given the investment horizon of 90 days AnaptysBio is expected to generate 1.16 times less return on investment than GH Research. But when comparing it to its historical volatility, AnaptysBio is 1.42 times less risky than GH Research. It trades about 0.31 of its potential returns per unit of risk. GH Research PLC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 709.00 in GH Research PLC on October 25, 2024 and sell it today you would earn a total of 171.00 from holding GH Research PLC or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AnaptysBio vs. GH Research PLC
Performance |
| Timeline |
| AnaptysBio |
| GH Research PLC |
AnaptysBio and GH Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AnaptysBio and GH Research
The main advantage of trading using opposite AnaptysBio and GH Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AnaptysBio position performs unexpectedly, GH Research 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 GH Research will offset losses from the drop in GH Research's long position.| AnaptysBio vs. Crinetics Pharmaceuticals | AnaptysBio vs. Rhythm Pharmaceuticals | AnaptysBio vs. Kura Oncology | AnaptysBio vs. CytomX Therapeutics |
| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
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 the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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