Correlation Between Atara Biotherapeutics and Annexon
Can any of the company-specific risk be diversified away by investing in both Atara Biotherapeutics and Annexon 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 Atara Biotherapeutics and Annexon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atara Biotherapeutics and Annexon, you can compare the effects of market volatilities on Atara Biotherapeutics and Annexon 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 Atara Biotherapeutics with a short position of Annexon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atara Biotherapeutics and Annexon.
Diversification Opportunities for Atara Biotherapeutics and Annexon
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atara and Annexon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Atara Biotherapeutics and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon and Atara Biotherapeutics 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 Atara Biotherapeutics are associated (or correlated) with Annexon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexon has no effect on the direction of Atara Biotherapeutics i.e., Atara Biotherapeutics and Annexon go up and down completely randomly.
Pair Corralation between Atara Biotherapeutics and Annexon
Given the investment horizon of 90 days Atara Biotherapeutics is expected to generate 2.6 times more return on investment than Annexon. However, Atara Biotherapeutics is 2.6 times more volatile than Annexon. It trades about 0.17 of its potential returns per unit of risk. Annexon is currently generating about -0.42 per unit of risk. If you would invest 971.00 in Atara Biotherapeutics on September 2, 2024 and sell it today you would earn a total of 247.00 from holding Atara Biotherapeutics or generate 25.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atara Biotherapeutics vs. Annexon
Performance |
| Timeline |
| Atara Biotherapeutics |
| Annexon |
Atara Biotherapeutics and Annexon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atara Biotherapeutics and Annexon
The main advantage of trading using opposite Atara Biotherapeutics and Annexon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atara Biotherapeutics position performs unexpectedly, Annexon 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 Annexon will offset losses from the drop in Annexon's long position.| Atara Biotherapeutics vs. Fate Therapeutics | Atara Biotherapeutics vs. Sana Biotechnology | Atara Biotherapeutics vs. Caribou Biosciences | Atara Biotherapeutics vs. Arcus Biosciences |
| Annexon vs. Immix Biopharma | Annexon vs. Cns Pharmaceuticals | Annexon vs. Hepion Pharmaceuticals | Annexon vs. Day One Biopharmaceuticals |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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