Correlation Between AN2 Therapeutics and Novo Nordisk
Can any of the company-specific risk be diversified away by investing in both AN2 Therapeutics and Novo Nordisk 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 Novo Nordisk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AN2 Therapeutics and Novo Nordisk AS, you can compare the effects of market volatilities on AN2 Therapeutics and Novo Nordisk 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 Novo Nordisk. Check out your portfolio center. Please also check ongoing floating volatility patterns of AN2 Therapeutics and Novo Nordisk.
Diversification Opportunities for AN2 Therapeutics and Novo Nordisk
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between AN2 and Novo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding AN2 Therapeutics and Novo Nordisk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Nordisk AS 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 Novo Nordisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Nordisk AS has no effect on the direction of AN2 Therapeutics i.e., AN2 Therapeutics and Novo Nordisk go up and down completely randomly.
Pair Corralation between AN2 Therapeutics and Novo Nordisk
Given the investment horizon of 90 days AN2 Therapeutics is expected to generate 2.27 times more return on investment than Novo Nordisk. However, AN2 Therapeutics is 2.27 times more volatile than Novo Nordisk AS. It trades about 0.22 of its potential returns per unit of risk. Novo Nordisk AS is currently generating about -0.14 per unit of risk. If you would invest 110.00 in AN2 Therapeutics on August 27, 2024 and sell it today you would earn a total of 29.00 from holding AN2 Therapeutics or generate 26.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AN2 Therapeutics vs. Novo Nordisk AS
Performance |
| Timeline |
| AN2 Therapeutics |
| Novo Nordisk AS |
AN2 Therapeutics and Novo Nordisk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AN2 Therapeutics and Novo Nordisk
The main advantage of trading using opposite AN2 Therapeutics and Novo Nordisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AN2 Therapeutics position performs unexpectedly, Novo Nordisk 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 Novo Nordisk will offset losses from the drop in Novo Nordisk's long position.| AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
| Novo Nordisk vs. Nuvalent | Novo Nordisk vs. Arcellx | Novo Nordisk vs. Vaxcyte | Novo Nordisk vs. Viridian 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| 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 |