Correlation Between ANI Pharmaceuticals and Supernus Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both ANI Pharmaceuticals and Supernus Pharmaceuticals 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 Supernus Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANI Pharmaceuticals and Supernus Pharmaceuticals, you can compare the effects of market volatilities on ANI Pharmaceuticals and Supernus Pharmaceuticals 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 Supernus Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANI Pharmaceuticals and Supernus Pharmaceuticals.
Diversification Opportunities for ANI Pharmaceuticals and Supernus Pharmaceuticals
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANI and Supernus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ANI Pharmaceuticals and Supernus Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supernus Pharmaceuticals 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 Supernus Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supernus Pharmaceuticals has no effect on the direction of ANI Pharmaceuticals i.e., ANI Pharmaceuticals and Supernus Pharmaceuticals go up and down completely randomly.
Pair Corralation between ANI Pharmaceuticals and Supernus Pharmaceuticals
Given the investment horizon of 90 days ANI Pharmaceuticals is expected to generate 25.03 times less return on investment than Supernus Pharmaceuticals. In addition to that, ANI Pharmaceuticals is 1.02 times more volatile than Supernus Pharmaceuticals. It trades about 0.01 of its total potential returns per unit of risk. Supernus Pharmaceuticals is currently generating about 0.2 per unit of volatility. If you would invest 3,075 in Supernus Pharmaceuticals on August 28, 2024 and sell it today you would earn a total of 535.00 from holding Supernus Pharmaceuticals or generate 17.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANI Pharmaceuticals vs. Supernus Pharmaceuticals
Performance |
| Timeline |
| ANI Pharmaceuticals |
| Supernus Pharmaceuticals |
ANI Pharmaceuticals and Supernus Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANI Pharmaceuticals and Supernus Pharmaceuticals
The main advantage of trading using opposite ANI Pharmaceuticals and Supernus Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANI Pharmaceuticals position performs unexpectedly, Supernus Pharmaceuticals 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 Supernus Pharmaceuticals will offset losses from the drop in Supernus Pharmaceuticals' 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 |
| Supernus Pharmaceuticals vs. Prestige Brand Holdings | Supernus Pharmaceuticals vs. Evotec SE ADR | Supernus Pharmaceuticals vs. Collegium Pharmaceutical | Supernus Pharmaceuticals vs. ANI 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 CEOs Directory module to screen CEOs from public companies around the world.
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