Correlation Between Anika Therapeutics and PAVmed
Can any of the company-specific risk be diversified away by investing in both Anika Therapeutics and PAVmed 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 PAVmed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anika Therapeutics and PAVmed Inc, you can compare the effects of market volatilities on Anika Therapeutics and PAVmed 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 PAVmed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anika Therapeutics and PAVmed.
Diversification Opportunities for Anika Therapeutics and PAVmed
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anika and PAVmed is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Anika Therapeutics and PAVmed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAVmed 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 PAVmed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAVmed Inc has no effect on the direction of Anika Therapeutics i.e., Anika Therapeutics and PAVmed go up and down completely randomly.
Pair Corralation between Anika Therapeutics and PAVmed
Given the investment horizon of 90 days Anika Therapeutics is expected to under-perform the PAVmed. In addition to that, Anika Therapeutics is 1.51 times more volatile than PAVmed Inc. It trades about -0.17 of its total potential returns per unit of risk. PAVmed Inc is currently generating about -0.09 per unit of volatility. If you would invest 106.00 in PAVmed Inc on August 30, 2024 and sell it today you would lose (12.00) from holding PAVmed Inc or give up 11.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Anika Therapeutics vs. PAVmed Inc
Performance |
| Timeline |
| Anika Therapeutics |
| PAVmed Inc |
Anika Therapeutics and PAVmed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anika Therapeutics and PAVmed
The main advantage of trading using opposite Anika Therapeutics and PAVmed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anika Therapeutics position performs unexpectedly, PAVmed 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 PAVmed will offset losses from the drop in PAVmed's 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |