Correlation Between ANT and Inhibikase Therapeutics
Can any of the company-specific risk be diversified away by investing in both ANT 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 ANT and Inhibikase Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Inhibikase Therapeutics, you can compare the effects of market volatilities on ANT 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 ANT with a short position of Inhibikase Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Inhibikase Therapeutics.
Diversification Opportunities for ANT and Inhibikase Therapeutics
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANT and Inhibikase is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Inhibikase Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibikase Therapeutics and ANT 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 ANT 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 ANT i.e., ANT and Inhibikase Therapeutics go up and down completely randomly.
Pair Corralation between ANT and Inhibikase Therapeutics
Assuming the 90 days trading horizon ANT is expected to generate 5.4 times more return on investment than Inhibikase Therapeutics. However, ANT is 5.4 times more volatile than Inhibikase Therapeutics. It trades about 0.09 of its potential returns per unit of risk. Inhibikase Therapeutics is currently generating about -0.18 per unit of risk. If you would invest 147.00 in ANT on October 20, 2024 and sell it today you would earn a total of 0.00 from holding ANT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
ANT vs. Inhibikase Therapeutics
Performance |
| Timeline |
| ANT |
| Inhibikase Therapeutics |
ANT and Inhibikase Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Inhibikase Therapeutics
The main advantage of trading using opposite ANT and Inhibikase Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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.The idea behind ANT and Inhibikase Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Inhibikase Therapeutics vs. DiaMedica Therapeutics | Inhibikase Therapeutics vs. Milestone Pharmaceuticals | Inhibikase Therapeutics vs. Seres Therapeutics | Inhibikase Therapeutics vs. Oncolytics Biotech |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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