Correlation Between Anatara Lifesciences and FSA
Can any of the company-specific risk be diversified away by investing in both Anatara Lifesciences and FSA 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 Anatara Lifesciences and FSA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anatara Lifesciences and FSA Group, you can compare the effects of market volatilities on Anatara Lifesciences and FSA 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 Anatara Lifesciences with a short position of FSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anatara Lifesciences and FSA.
Diversification Opportunities for Anatara Lifesciences and FSA
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anatara and FSA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Anatara Lifesciences and FSA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSA Group and Anatara Lifesciences 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 Anatara Lifesciences are associated (or correlated) with FSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSA Group has no effect on the direction of Anatara Lifesciences i.e., Anatara Lifesciences and FSA go up and down completely randomly.
Pair Corralation between Anatara Lifesciences and FSA
Assuming the 90 days trading horizon Anatara Lifesciences is expected to under-perform the FSA. In addition to that, Anatara Lifesciences is 3.14 times more volatile than FSA Group. It trades about -0.33 of its total potential returns per unit of risk. FSA Group is currently generating about -0.17 per unit of volatility. If you would invest 84.00 in FSA Group on September 12, 2024 and sell it today you would lose (4.00) from holding FSA Group or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anatara Lifesciences vs. FSA Group
Performance |
| Timeline |
| Anatara Lifesciences |
| FSA Group |
Anatara Lifesciences and FSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anatara Lifesciences and FSA
The main advantage of trading using opposite Anatara Lifesciences and FSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anatara Lifesciences position performs unexpectedly, FSA 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 FSA will offset losses from the drop in FSA's long position.| Anatara Lifesciences vs. Australian United Investment | Anatara Lifesciences vs. Clime Investment Management | Anatara Lifesciences vs. Macquarie Technology Group | Anatara Lifesciences vs. BKI Investment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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