Correlation Between Anpac Bio and Ascendis Pharma
Can any of the company-specific risk be diversified away by investing in both Anpac Bio and Ascendis Pharma 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 Anpac Bio and Ascendis Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anpac Bio Medical and Ascendis Pharma AS, you can compare the effects of market volatilities on Anpac Bio and Ascendis Pharma 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 Anpac Bio with a short position of Ascendis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anpac Bio and Ascendis Pharma.
Diversification Opportunities for Anpac Bio and Ascendis Pharma
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anpac and Ascendis is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Anpac Bio Medical and Ascendis Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Pharma AS and Anpac Bio 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 Anpac Bio Medical are associated (or correlated) with Ascendis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Pharma AS has no effect on the direction of Anpac Bio i.e., Anpac Bio and Ascendis Pharma go up and down completely randomly.
Pair Corralation between Anpac Bio and Ascendis Pharma
If you would invest 9,272 in Ascendis Pharma AS on September 12, 2024 and sell it today you would earn a total of 3,695 from holding Ascendis Pharma AS or generate 39.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Anpac Bio Medical vs. Ascendis Pharma AS
Performance |
| Timeline |
| Anpac Bio Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ascendis Pharma AS |
Anpac Bio and Ascendis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anpac Bio and Ascendis Pharma
The main advantage of trading using opposite Anpac Bio and Ascendis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anpac Bio position performs unexpectedly, Ascendis Pharma 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 Ascendis Pharma will offset losses from the drop in Ascendis Pharma's long position.| Anpac Bio vs. Anebulo Pharmaceuticals | Anpac Bio vs. Aerovate Therapeutics | Anpac Bio vs. Acrivon Therapeutics, Common | Anpac Bio vs. Opthea |
| Ascendis Pharma vs. Equillium | Ascendis Pharma vs. DiaMedica Therapeutics | Ascendis Pharma vs. Valneva SE ADR | Ascendis Pharma vs. Vivani Medical |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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