Correlation Between ANI Pharmaceuticals and SIGA Technologies
Can any of the company-specific risk be diversified away by investing in both ANI Pharmaceuticals and SIGA Technologies 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 SIGA Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANI Pharmaceuticals and SIGA Technologies, you can compare the effects of market volatilities on ANI Pharmaceuticals and SIGA Technologies 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 SIGA Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANI Pharmaceuticals and SIGA Technologies.
Diversification Opportunities for ANI Pharmaceuticals and SIGA Technologies
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANI and SIGA is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ANI Pharmaceuticals and SIGA Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIGA Technologies 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 SIGA Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIGA Technologies has no effect on the direction of ANI Pharmaceuticals i.e., ANI Pharmaceuticals and SIGA Technologies go up and down completely randomly.
Pair Corralation between ANI Pharmaceuticals and SIGA Technologies
Given the investment horizon of 90 days ANI Pharmaceuticals is expected to generate 2.86 times less return on investment than SIGA Technologies. But when comparing it to its historical volatility, ANI Pharmaceuticals is 1.9 times less risky than SIGA Technologies. It trades about 0.03 of its potential returns per unit of risk. SIGA Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 520.00 in SIGA Technologies on September 1, 2024 and sell it today you would earn a total of 208.00 from holding SIGA Technologies or generate 40.0% 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. SIGA Technologies
Performance |
| Timeline |
| ANI Pharmaceuticals |
| SIGA Technologies |
ANI Pharmaceuticals and SIGA Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANI Pharmaceuticals and SIGA Technologies
The main advantage of trading using opposite ANI Pharmaceuticals and SIGA Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANI Pharmaceuticals position performs unexpectedly, SIGA Technologies 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 SIGA Technologies will offset losses from the drop in SIGA Technologies' long position.| ANI Pharmaceuticals vs. Crinetics Pharmaceuticals | ANI Pharmaceuticals vs. Enanta Pharmaceuticals | ANI Pharmaceuticals vs. Amicus Therapeutics | ANI Pharmaceuticals vs. Connect Biopharma Holdings |
| SIGA Technologies vs. Crinetics Pharmaceuticals | SIGA Technologies vs. Enanta Pharmaceuticals | SIGA Technologies vs. Amicus Therapeutics | SIGA Technologies vs. Connect Biopharma Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance |