Correlation Between Anika Therapeutics and IShares ESG
Can any of the company-specific risk be diversified away by investing in both Anika Therapeutics and IShares ESG 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 IShares ESG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anika Therapeutics and iShares ESG USD, you can compare the effects of market volatilities on Anika Therapeutics and IShares ESG 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 IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anika Therapeutics and IShares ESG.
Diversification Opportunities for Anika Therapeutics and IShares ESG
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anika and IShares is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Anika Therapeutics and iShares ESG USD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG USD 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 IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG USD has no effect on the direction of Anika Therapeutics i.e., Anika Therapeutics and IShares ESG go up and down completely randomly.
Pair Corralation between Anika Therapeutics and IShares ESG
Given the investment horizon of 90 days Anika Therapeutics is expected to under-perform the IShares ESG. In addition to that, Anika Therapeutics is 12.92 times more volatile than iShares ESG USD. It trades about -0.12 of its total potential returns per unit of risk. iShares ESG USD is currently generating about -0.09 per unit of volatility. If you would invest 2,362 in iShares ESG USD on August 30, 2024 and sell it today you would lose (38.00) from holding iShares ESG USD or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Anika Therapeutics vs. iShares ESG USD
Performance |
| Timeline |
| Anika Therapeutics |
| iShares ESG USD |
Anika Therapeutics and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anika Therapeutics and IShares ESG
The main advantage of trading using opposite Anika Therapeutics and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anika Therapeutics position performs unexpectedly, IShares ESG 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 IShares ESG will offset losses from the drop in IShares ESG's long position.| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
| IShares ESG vs. VanEck Vectors Moodys | IShares ESG vs. BondBloxx ETF Trust | IShares ESG vs. Vanguard ESG Corporate | IShares ESG vs. Vanguard Intermediate Term Corporate |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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