Correlation Between AN2 Therapeutics and Sio Gene
Can any of the company-specific risk be diversified away by investing in both AN2 Therapeutics and Sio Gene 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 Sio Gene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AN2 Therapeutics and Sio Gene Therapies, you can compare the effects of market volatilities on AN2 Therapeutics and Sio Gene 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 Sio Gene. Check out your portfolio center. Please also check ongoing floating volatility patterns of AN2 Therapeutics and Sio Gene.
Diversification Opportunities for AN2 Therapeutics and Sio Gene
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AN2 and Sio is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding AN2 Therapeutics and Sio Gene Therapies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sio Gene Therapies 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 Sio Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sio Gene Therapies has no effect on the direction of AN2 Therapeutics i.e., AN2 Therapeutics and Sio Gene go up and down completely randomly.
Pair Corralation between AN2 Therapeutics and Sio Gene
If you would invest 104.00 in AN2 Therapeutics on August 25, 2024 and sell it today you would earn a total of 30.00 from holding AN2 Therapeutics or generate 28.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.22% |
| Values | Daily Returns |
AN2 Therapeutics vs. Sio Gene Therapies
Performance |
| Timeline |
| AN2 Therapeutics |
| Sio Gene Therapies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AN2 Therapeutics and Sio Gene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AN2 Therapeutics and Sio Gene
The main advantage of trading using opposite AN2 Therapeutics and Sio Gene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AN2 Therapeutics position performs unexpectedly, Sio Gene 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 Sio Gene will offset losses from the drop in Sio Gene's long position.| AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
| Sio Gene vs. CytomX Therapeutics | Sio Gene vs. Assembly Biosciences | Sio Gene vs. Instil Bio | Sio Gene vs. Nuvation Bio |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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