Correlation Between AN2 Therapeutics and Bio Path
Can any of the company-specific risk be diversified away by investing in both AN2 Therapeutics and Bio Path 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 Bio Path into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AN2 Therapeutics and Bio Path Holdings, you can compare the effects of market volatilities on AN2 Therapeutics and Bio Path 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 Bio Path. Check out your portfolio center. Please also check ongoing floating volatility patterns of AN2 Therapeutics and Bio Path.
Diversification Opportunities for AN2 Therapeutics and Bio Path
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AN2 and Bio is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AN2 Therapeutics and Bio Path Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Path Holdings 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 Bio Path. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Path Holdings has no effect on the direction of AN2 Therapeutics i.e., AN2 Therapeutics and Bio Path go up and down completely randomly.
Pair Corralation between AN2 Therapeutics and Bio Path
Given the investment horizon of 90 days AN2 Therapeutics is expected to generate 0.81 times more return on investment than Bio Path. However, AN2 Therapeutics is 1.24 times less risky than Bio Path. It trades about -0.01 of its potential returns per unit of risk. Bio Path Holdings is currently generating about -0.05 per unit of risk. If you would invest 920.00 in AN2 Therapeutics on August 29, 2024 and sell it today you would lose (781.00) from holding AN2 Therapeutics or give up 84.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AN2 Therapeutics vs. Bio Path Holdings
Performance |
| Timeline |
| AN2 Therapeutics |
| Bio Path Holdings |
AN2 Therapeutics and Bio Path Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AN2 Therapeutics and Bio Path
The main advantage of trading using opposite AN2 Therapeutics and Bio Path positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AN2 Therapeutics position performs unexpectedly, Bio Path 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 Bio Path will offset losses from the drop in Bio Path's long position.| AN2 Therapeutics vs. Eliem Therapeutics | AN2 Therapeutics vs. Scpharmaceuticals | AN2 Therapeutics vs. Milestone Pharmaceuticals | AN2 Therapeutics vs. Seres Therapeutics |
| Bio Path vs. Capricor Therapeutics | Bio Path vs. NextCure | Bio Path vs. Pulmatrix | Bio Path vs. Crinetics Pharmaceuticals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |