Correlation Between Anika Therapeutics and Schwab 5
Can any of the company-specific risk be diversified away by investing in both Anika Therapeutics and Schwab 5 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 Schwab 5 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anika Therapeutics and Schwab 5 10 Year, you can compare the effects of market volatilities on Anika Therapeutics and Schwab 5 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 Schwab 5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anika Therapeutics and Schwab 5.
Diversification Opportunities for Anika Therapeutics and Schwab 5
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anika and Schwab is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anika Therapeutics and Schwab 5 10 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab 5 10 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 Schwab 5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab 5 10 has no effect on the direction of Anika Therapeutics i.e., Anika Therapeutics and Schwab 5 go up and down completely randomly.
Pair Corralation between Anika Therapeutics and Schwab 5
Given the investment horizon of 90 days Anika Therapeutics is expected to under-perform the Schwab 5. In addition to that, Anika Therapeutics is 17.42 times more volatile than Schwab 5 10 Year. It trades about -0.17 of its total potential returns per unit of risk. Schwab 5 10 Year is currently generating about 0.06 per unit of volatility. If you would invest 2,241 in Schwab 5 10 Year on August 30, 2024 and sell it today you would earn a total of 11.00 from holding Schwab 5 10 Year or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Anika Therapeutics vs. Schwab 5 10 Year
Performance |
| Timeline |
| Anika Therapeutics |
| Schwab 5 10 |
Anika Therapeutics and Schwab 5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anika Therapeutics and Schwab 5
The main advantage of trading using opposite Anika Therapeutics and Schwab 5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anika Therapeutics position performs unexpectedly, Schwab 5 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 Schwab 5 will offset losses from the drop in Schwab 5's long position.| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
| Schwab 5 vs. Schwab 1 5 Year | Schwab 5 vs. Schwab Long Term Treasury | Schwab 5 vs. Schwab Intermediate Term Treasury | Schwab 5 vs. Schwab Short Term Treasury |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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