Correlation Between Anika Therapeutics and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Anika Therapeutics and SPDR Barclays 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 SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anika Therapeutics and SPDR Barclays Intermediate, you can compare the effects of market volatilities on Anika Therapeutics and SPDR Barclays 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 SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anika Therapeutics and SPDR Barclays.
Diversification Opportunities for Anika Therapeutics and SPDR Barclays
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anika and SPDR is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Anika Therapeutics and SPDR Barclays Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Interm 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 SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Interm has no effect on the direction of Anika Therapeutics i.e., Anika Therapeutics and SPDR Barclays go up and down completely randomly.
Pair Corralation between Anika Therapeutics and SPDR Barclays
Given the investment horizon of 90 days Anika Therapeutics is expected to under-perform the SPDR Barclays. In addition to that, Anika Therapeutics is 30.29 times more volatile than SPDR Barclays Intermediate. It trades about -0.18 of its total potential returns per unit of risk. SPDR Barclays Intermediate is currently generating about -0.05 per unit of volatility. If you would invest 3,302 in SPDR Barclays Intermediate on August 24, 2024 and sell it today you would lose (9.00) from holding SPDR Barclays Intermediate or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anika Therapeutics vs. SPDR Barclays Intermediate
Performance |
| Timeline |
| Anika Therapeutics |
| SPDR Barclays Interm |
Anika Therapeutics and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anika Therapeutics and SPDR Barclays
The main advantage of trading using opposite Anika Therapeutics and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anika Therapeutics position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
| SPDR Barclays vs. Senstar Technologies | SPDR Barclays vs. ImmuCell | SPDR Barclays vs. Anika Therapeutics | SPDR Barclays vs. Aquagold International |
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 CEOs Directory module to screen CEOs from public companies around the world.
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