Correlation Between ANI Pharmaceuticals and Catalent
Can any of the company-specific risk be diversified away by investing in both ANI Pharmaceuticals and Catalent 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 ANI Pharmaceuticals and Catalent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANI Pharmaceuticals and Catalent, you can compare the effects of market volatilities on ANI Pharmaceuticals and Catalent 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 ANI Pharmaceuticals with a short position of Catalent. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANI Pharmaceuticals and Catalent.
Diversification Opportunities for ANI Pharmaceuticals and Catalent
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANI and Catalent is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding ANI Pharmaceuticals and Catalent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalent and ANI Pharmaceuticals 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 ANI Pharmaceuticals are associated (or correlated) with Catalent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalent has no effect on the direction of ANI Pharmaceuticals i.e., ANI Pharmaceuticals and Catalent go up and down completely randomly.
Pair Corralation between ANI Pharmaceuticals and Catalent
Given the investment horizon of 90 days ANI Pharmaceuticals is expected to under-perform the Catalent. In addition to that, ANI Pharmaceuticals is 2.59 times more volatile than Catalent. It trades about -0.04 of its total potential returns per unit of risk. Catalent is currently generating about 0.18 per unit of volatility. If you would invest 5,909 in Catalent on August 26, 2024 and sell it today you would earn a total of 189.00 from holding Catalent or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANI Pharmaceuticals vs. Catalent
Performance |
| Timeline |
| ANI Pharmaceuticals |
| Catalent |
ANI Pharmaceuticals and Catalent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANI Pharmaceuticals and Catalent
The main advantage of trading using opposite ANI Pharmaceuticals and Catalent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANI Pharmaceuticals position performs unexpectedly, Catalent 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 Catalent will offset losses from the drop in Catalent's long position.| ANI Pharmaceuticals vs. Phibro Animal Health | ANI Pharmaceuticals vs. Prestige Brand Holdings | ANI Pharmaceuticals vs. Alkermes Plc | ANI Pharmaceuticals vs. Dr Reddys Laboratories |
| Catalent vs. IQVIA Holdings | Catalent vs. West Pharmaceutical Services | Catalent vs. Charles River Laboratories | Catalent vs. Bio Rad Laboratories |
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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