Correlation Between AN2 Therapeutics and ABVC Biopharma
Can any of the company-specific risk be diversified away by investing in both AN2 Therapeutics and ABVC Biopharma 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 AN2 Therapeutics and ABVC Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AN2 Therapeutics and ABVC Biopharma, you can compare the effects of market volatilities on AN2 Therapeutics and ABVC Biopharma 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 AN2 Therapeutics with a short position of ABVC Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of AN2 Therapeutics and ABVC Biopharma.
Diversification Opportunities for AN2 Therapeutics and ABVC Biopharma
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AN2 and ABVC is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding AN2 Therapeutics and ABVC Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABVC Biopharma and AN2 Therapeutics 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 AN2 Therapeutics are associated (or correlated) with ABVC Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABVC Biopharma has no effect on the direction of AN2 Therapeutics i.e., AN2 Therapeutics and ABVC Biopharma go up and down completely randomly.
Pair Corralation between AN2 Therapeutics and ABVC Biopharma
Given the investment horizon of 90 days AN2 Therapeutics is expected to under-perform the ABVC Biopharma. In addition to that, AN2 Therapeutics is 1.07 times more volatile than ABVC Biopharma. It trades about -0.07 of its total potential returns per unit of risk. ABVC Biopharma is currently generating about -0.02 per unit of volatility. If you would invest 126.00 in ABVC Biopharma on August 26, 2024 and sell it today you would lose (71.00) from holding ABVC Biopharma or give up 56.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AN2 Therapeutics vs. ABVC Biopharma
Performance |
| Timeline |
| AN2 Therapeutics |
| ABVC Biopharma |
AN2 Therapeutics and ABVC Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AN2 Therapeutics and ABVC Biopharma
The main advantage of trading using opposite AN2 Therapeutics and ABVC Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AN2 Therapeutics position performs unexpectedly, ABVC Biopharma 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 ABVC Biopharma will offset losses from the drop in ABVC Biopharma's long position.| AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
| ABVC Biopharma vs. Indaptus Therapeutics | ABVC Biopharma vs. Pasithea Therapeutics Corp | ABVC Biopharma vs. Forte Biosciences | ABVC Biopharma vs. Aileron Therapeutics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |