Correlation Between Anika Therapeutics and Ainos
Can any of the company-specific risk be diversified away by investing in both Anika Therapeutics and Ainos 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 Anika Therapeutics and Ainos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anika Therapeutics and Ainos Inc, you can compare the effects of market volatilities on Anika Therapeutics and Ainos 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 Anika Therapeutics with a short position of Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anika Therapeutics and Ainos.
Diversification Opportunities for Anika Therapeutics and Ainos
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anika and Ainos is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Anika Therapeutics and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Anika Therapeutics 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 Anika Therapeutics are associated (or correlated) with Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of Anika Therapeutics i.e., Anika Therapeutics and Ainos go up and down completely randomly.
Pair Corralation between Anika Therapeutics and Ainos
Given the investment horizon of 90 days Anika Therapeutics is expected to under-perform the Ainos. But the stock apears to be less risky and, when comparing its historical volatility, Anika Therapeutics is 2.57 times less risky than Ainos. The stock trades about -0.08 of its potential returns per unit of risk. The Ainos Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 53.00 in Ainos Inc on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Ainos Inc or generate 28.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anika Therapeutics vs. Ainos Inc
Performance |
| Timeline |
| Anika Therapeutics |
| Ainos Inc |
Anika Therapeutics and Ainos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anika Therapeutics and Ainos
The main advantage of trading using opposite Anika Therapeutics and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anika Therapeutics position performs unexpectedly, Ainos 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 Ainos will offset losses from the drop in Ainos' long position.| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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