Correlation Between Anpac Bio and Inhibikase Therapeutics
Can any of the company-specific risk be diversified away by investing in both Anpac Bio and Inhibikase Therapeutics 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 Inhibikase Therapeutics 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 Inhibikase Therapeutics, you can compare the effects of market volatilities on Anpac Bio and Inhibikase Therapeutics 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 Inhibikase Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anpac Bio and Inhibikase Therapeutics.
Diversification Opportunities for Anpac Bio and Inhibikase Therapeutics
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anpac and Inhibikase is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Anpac Bio Medical and Inhibikase Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibikase Therapeutics 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 Inhibikase Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibikase Therapeutics has no effect on the direction of Anpac Bio i.e., Anpac Bio and Inhibikase Therapeutics go up and down completely randomly.
Pair Corralation between Anpac Bio and Inhibikase Therapeutics
If you would invest 261.00 in Inhibikase Therapeutics on September 4, 2024 and sell it today you would earn a total of 15.00 from holding Inhibikase Therapeutics or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Anpac Bio Medical vs. Inhibikase Therapeutics
Performance |
| Timeline |
| Anpac Bio Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inhibikase Therapeutics |
Anpac Bio and Inhibikase Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anpac Bio and Inhibikase Therapeutics
The main advantage of trading using opposite Anpac Bio and Inhibikase Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anpac Bio position performs unexpectedly, Inhibikase Therapeutics 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 Inhibikase Therapeutics will offset losses from the drop in Inhibikase Therapeutics' long position.| Anpac Bio vs. Anebulo Pharmaceuticals | Anpac Bio vs. Aerovate Therapeutics | Anpac Bio vs. Acrivon Therapeutics, Common | Anpac Bio vs. Opthea |
| Inhibikase Therapeutics vs. Candel Therapeutics | Inhibikase Therapeutics vs. Cingulate Warrants | Inhibikase Therapeutics vs. Unicycive Therapeutics | Inhibikase Therapeutics vs. Cardio Diagnostics 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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