Correlation Between Anika Therapeutics and Surgalign Holdings
Can any of the company-specific risk be diversified away by investing in both Anika Therapeutics and Surgalign Holdings 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 Surgalign Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anika Therapeutics and Surgalign Holdings, you can compare the effects of market volatilities on Anika Therapeutics and Surgalign Holdings 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 Surgalign Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anika Therapeutics and Surgalign Holdings.
Diversification Opportunities for Anika Therapeutics and Surgalign Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Anika and Surgalign is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Anika Therapeutics and Surgalign Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgalign Holdings 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 Surgalign Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgalign Holdings has no effect on the direction of Anika Therapeutics i.e., Anika Therapeutics and Surgalign Holdings go up and down completely randomly.
Pair Corralation between Anika Therapeutics and Surgalign Holdings
If you would invest (100.00) in Surgalign Holdings on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Surgalign Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Anika Therapeutics vs. Surgalign Holdings
Performance |
| Timeline |
| Anika Therapeutics |
| Surgalign Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Anika Therapeutics and Surgalign Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anika Therapeutics and Surgalign Holdings
The main advantage of trading using opposite Anika Therapeutics and Surgalign Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anika Therapeutics position performs unexpectedly, Surgalign Holdings 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 Surgalign Holdings will offset losses from the drop in Surgalign Holdings' long position.| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
| Surgalign Holdings vs. Paragon 28 | Surgalign Holdings vs. Orthofix Medical | Surgalign Holdings vs. Si Bone | Surgalign Holdings vs. Avanos Medical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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