Correlation Between ANI Pharmaceuticals and OptiNose
Can any of the company-specific risk be diversified away by investing in both ANI Pharmaceuticals and OptiNose 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 OptiNose into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANI Pharmaceuticals and OptiNose, you can compare the effects of market volatilities on ANI Pharmaceuticals and OptiNose 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 OptiNose. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANI Pharmaceuticals and OptiNose.
Diversification Opportunities for ANI Pharmaceuticals and OptiNose
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANI and OptiNose is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ANI Pharmaceuticals and OptiNose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiNose 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 OptiNose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiNose has no effect on the direction of ANI Pharmaceuticals i.e., ANI Pharmaceuticals and OptiNose go up and down completely randomly.
Pair Corralation between ANI Pharmaceuticals and OptiNose
Given the investment horizon of 90 days ANI Pharmaceuticals is expected to generate 0.49 times more return on investment than OptiNose. However, ANI Pharmaceuticals is 2.05 times less risky than OptiNose. It trades about 0.04 of its potential returns per unit of risk. OptiNose is currently generating about -0.03 per unit of risk. If you would invest 4,392 in ANI Pharmaceuticals on August 28, 2024 and sell it today you would earn a total of 1,394 from holding ANI Pharmaceuticals or generate 31.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANI Pharmaceuticals vs. OptiNose
Performance |
| Timeline |
| ANI Pharmaceuticals |
| OptiNose |
ANI Pharmaceuticals and OptiNose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANI Pharmaceuticals and OptiNose
The main advantage of trading using opposite ANI Pharmaceuticals and OptiNose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANI Pharmaceuticals position performs unexpectedly, OptiNose 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 OptiNose will offset losses from the drop in OptiNose'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 |
| OptiNose vs. Collegium Pharmaceutical | OptiNose vs. Phibro Animal Health | OptiNose vs. ANI Pharmaceuticals | OptiNose vs. Procaps Group SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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