Correlation Between Anika Therapeutics and VanEck Vectors
Can any of the company-specific risk be diversified away by investing in both Anika Therapeutics and VanEck Vectors 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 VanEck Vectors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anika Therapeutics and VanEck Vectors Moodys, you can compare the effects of market volatilities on Anika Therapeutics and VanEck Vectors 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 VanEck Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anika Therapeutics and VanEck Vectors.
Diversification Opportunities for Anika Therapeutics and VanEck Vectors
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anika and VanEck is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Anika Therapeutics and VanEck Vectors Moodys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vectors Moodys 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 VanEck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vectors Moodys has no effect on the direction of Anika Therapeutics i.e., Anika Therapeutics and VanEck Vectors go up and down completely randomly.
Pair Corralation between Anika Therapeutics and VanEck Vectors
Given the investment horizon of 90 days Anika Therapeutics is expected to under-perform the VanEck Vectors. In addition to that, Anika Therapeutics is 5.52 times more volatile than VanEck Vectors Moodys. It trades about -0.08 of its total potential returns per unit of risk. VanEck Vectors Moodys is currently generating about 0.01 per unit of volatility. If you would invest 2,105 in VanEck Vectors Moodys on January 10, 2025 and sell it today you would earn a total of 3.40 from holding VanEck Vectors Moodys or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anika Therapeutics vs. VanEck Vectors Moodys
Performance |
| Timeline |
| Anika Therapeutics |
| VanEck Vectors Moodys |
Anika Therapeutics and VanEck Vectors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anika Therapeutics and VanEck Vectors
The main advantage of trading using opposite Anika Therapeutics and VanEck Vectors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anika Therapeutics position performs unexpectedly, VanEck Vectors 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 VanEck Vectors will offset losses from the drop in VanEck Vectors' long position.| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
| VanEck Vectors vs. Horace Mann Educators | VanEck Vectors vs. ProAssurance | VanEck Vectors vs. Selective Insurance Group | VanEck Vectors vs. Kingsway Financial Services |
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 Stocks Directory module to find actively traded stocks across global markets.
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