Correlation Between AN2 Therapeutics and AnaptysBio
Can any of the company-specific risk be diversified away by investing in both AN2 Therapeutics and AnaptysBio 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 AnaptysBio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AN2 Therapeutics and AnaptysBio, you can compare the effects of market volatilities on AN2 Therapeutics and AnaptysBio 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 AnaptysBio. Check out your portfolio center. Please also check ongoing floating volatility patterns of AN2 Therapeutics and AnaptysBio.
Diversification Opportunities for AN2 Therapeutics and AnaptysBio
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AN2 and AnaptysBio is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding AN2 Therapeutics and AnaptysBio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnaptysBio 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 AnaptysBio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnaptysBio has no effect on the direction of AN2 Therapeutics i.e., AN2 Therapeutics and AnaptysBio go up and down completely randomly.
Pair Corralation between AN2 Therapeutics and AnaptysBio
Given the investment horizon of 90 days AN2 Therapeutics is expected to generate 6.12 times less return on investment than AnaptysBio. But when comparing it to its historical volatility, AN2 Therapeutics is 1.04 times less risky than AnaptysBio. It trades about 0.02 of its potential returns per unit of risk. AnaptysBio is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,500 in AnaptysBio on October 20, 2024 and sell it today you would earn a total of 85.00 from holding AnaptysBio or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AN2 Therapeutics vs. AnaptysBio
Performance |
| Timeline |
| AN2 Therapeutics |
| AnaptysBio |
AN2 Therapeutics and AnaptysBio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AN2 Therapeutics and AnaptysBio
The main advantage of trading using opposite AN2 Therapeutics and AnaptysBio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AN2 Therapeutics position performs unexpectedly, AnaptysBio 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 AnaptysBio will offset losses from the drop in AnaptysBio's long position.| AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
| AnaptysBio vs. Crinetics Pharmaceuticals | AnaptysBio vs. Rhythm Pharmaceuticals | AnaptysBio vs. Kura Oncology | AnaptysBio vs. CytomX 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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