Correlation Between Anika Therapeutics and Vanguard ESG
Can any of the company-specific risk be diversified away by investing in both Anika Therapeutics and Vanguard 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 Vanguard 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 Vanguard ESG Corporate, you can compare the effects of market volatilities on Anika Therapeutics and Vanguard 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 Vanguard ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anika Therapeutics and Vanguard ESG.
Diversification Opportunities for Anika Therapeutics and Vanguard ESG
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anika and Vanguard is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anika Therapeutics and Vanguard ESG Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard ESG Corporate 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 Vanguard ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard ESG Corporate has no effect on the direction of Anika Therapeutics i.e., Anika Therapeutics and Vanguard ESG go up and down completely randomly.
Pair Corralation between Anika Therapeutics and Vanguard ESG
Given the investment horizon of 90 days Anika Therapeutics is expected to under-perform the Vanguard ESG. In addition to that, Anika Therapeutics is 17.46 times more volatile than Vanguard ESG Corporate. It trades about -0.17 of its total potential returns per unit of risk. Vanguard ESG Corporate is currently generating about 0.07 per unit of volatility. If you would invest 6,283 in Vanguard ESG Corporate on August 31, 2024 and sell it today you would earn a total of 40.00 from holding Vanguard ESG Corporate or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anika Therapeutics vs. Vanguard ESG Corporate
Performance |
| Timeline |
| Anika Therapeutics |
| Vanguard ESG Corporate |
Anika Therapeutics and Vanguard ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anika Therapeutics and Vanguard ESG
The main advantage of trading using opposite Anika Therapeutics and Vanguard ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anika Therapeutics position performs unexpectedly, Vanguard 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 Vanguard ESG will offset losses from the drop in Vanguard ESG's long position.| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
| Vanguard ESG vs. iShares ESG USD | Vanguard ESG vs. FlexShares Disciplined Duration | Vanguard ESG vs. iShares ESG 1 5 | Vanguard ESG vs. First Trust Emerging |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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