Correlation Between AnaptysBio and Opthea
Can any of the company-specific risk be diversified away by investing in both AnaptysBio and Opthea 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 Opthea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AnaptysBio and Opthea, you can compare the effects of market volatilities on AnaptysBio and Opthea 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 Opthea. Check out your portfolio center. Please also check ongoing floating volatility patterns of AnaptysBio and Opthea.
Diversification Opportunities for AnaptysBio and Opthea
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between AnaptysBio and Opthea is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AnaptysBio and Opthea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opthea 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 Opthea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opthea has no effect on the direction of AnaptysBio i.e., AnaptysBio and Opthea go up and down completely randomly.
Pair Corralation between AnaptysBio and Opthea
Given the investment horizon of 90 days AnaptysBio is expected to generate 2.79 times more return on investment than Opthea. However, AnaptysBio is 2.79 times more volatile than Opthea. It trades about 0.02 of its potential returns per unit of risk. Opthea is currently generating about -0.26 per unit of risk. If you would invest 1,742 in AnaptysBio on December 1, 2024 and sell it today you would lose (60.00) from holding AnaptysBio or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AnaptysBio vs. Opthea
Performance |
| Timeline |
| AnaptysBio |
| Opthea |
AnaptysBio and Opthea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AnaptysBio and Opthea
The main advantage of trading using opposite AnaptysBio and Opthea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AnaptysBio position performs unexpectedly, Opthea 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 Opthea will offset losses from the drop in Opthea's long position.| AnaptysBio vs. Crinetics Pharmaceuticals | AnaptysBio vs. Rhythm Pharmaceuticals | AnaptysBio vs. Kura Oncology | AnaptysBio vs. CytomX Therapeutics |
| Opthea vs. Molecular Partners AG | Opthea vs. MediciNova | Opthea vs. Anebulo Pharmaceuticals | Opthea 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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