Correlation Between ANI Pharmaceuticals and Kamada
Can any of the company-specific risk be diversified away by investing in both ANI Pharmaceuticals and Kamada 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 Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANI Pharmaceuticals and Kamada, you can compare the effects of market volatilities on ANI Pharmaceuticals and Kamada 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 Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANI Pharmaceuticals and Kamada.
Diversification Opportunities for ANI Pharmaceuticals and Kamada
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ANI and Kamada is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ANI Pharmaceuticals and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada 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 Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of ANI Pharmaceuticals i.e., ANI Pharmaceuticals and Kamada go up and down completely randomly.
Pair Corralation between ANI Pharmaceuticals and Kamada
Given the investment horizon of 90 days ANI Pharmaceuticals is expected to generate 3.68 times less return on investment than Kamada. In addition to that, ANI Pharmaceuticals is 1.3 times more volatile than Kamada. It trades about 0.03 of its total potential returns per unit of risk. Kamada is currently generating about 0.17 per unit of volatility. If you would invest 547.00 in Kamada on August 28, 2024 and sell it today you would earn a total of 33.00 from holding Kamada or generate 6.03% 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. Kamada
Performance |
| Timeline |
| ANI Pharmaceuticals |
| Kamada |
ANI Pharmaceuticals and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANI Pharmaceuticals and Kamada
The main advantage of trading using opposite ANI Pharmaceuticals and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANI Pharmaceuticals position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada'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 |
| Kamada vs. Lifecore Biomedical | Kamada vs. Shuttle Pharmaceuticals | Kamada vs. Cumberland Pharmaceuticals | Kamada vs. Ironwood Pharmaceuticals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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