Correlation Between Alphatec Holdings and Anika Therapeutics
Can any of the company-specific risk be diversified away by investing in both Alphatec Holdings and Anika Therapeutics 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 Alphatec Holdings and Anika Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphatec Holdings and Anika Therapeutics, you can compare the effects of market volatilities on Alphatec Holdings and Anika Therapeutics 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 Alphatec Holdings with a short position of Anika Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphatec Holdings and Anika Therapeutics.
Diversification Opportunities for Alphatec Holdings and Anika Therapeutics
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alphatec and Anika is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Alphatec Holdings and Anika Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anika Therapeutics and Alphatec Holdings 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 Alphatec Holdings are associated (or correlated) with Anika Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anika Therapeutics has no effect on the direction of Alphatec Holdings i.e., Alphatec Holdings and Anika Therapeutics go up and down completely randomly.
Pair Corralation between Alphatec Holdings and Anika Therapeutics
Given the investment horizon of 90 days Alphatec Holdings is expected to generate 1.32 times more return on investment than Anika Therapeutics. However, Alphatec Holdings is 1.32 times more volatile than Anika Therapeutics. It trades about 0.34 of its potential returns per unit of risk. Anika Therapeutics is currently generating about -0.2 per unit of risk. If you would invest 527.00 in Alphatec Holdings on August 28, 2024 and sell it today you would earn a total of 435.00 from holding Alphatec Holdings or generate 82.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alphatec Holdings vs. Anika Therapeutics
Performance |
| Timeline |
| Alphatec Holdings |
| Anika Therapeutics |
Alphatec Holdings and Anika Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphatec Holdings and Anika Therapeutics
The main advantage of trading using opposite Alphatec Holdings and Anika Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphatec Holdings position performs unexpectedly, Anika Therapeutics 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 Anika Therapeutics will offset losses from the drop in Anika Therapeutics' long position.| Alphatec Holdings vs. Nutex Health | Alphatec Holdings vs. Mangoceuticals, Common Stock | Alphatec Holdings vs. Aclarion |
| Anika Therapeutics vs. Eliem Therapeutics | Anika Therapeutics vs. HCW Biologics | Anika Therapeutics vs. Scpharmaceuticals | Anika Therapeutics vs. Milestone 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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