Correlation Between ANI Pharmaceuticals and Haleon PLC
Can any of the company-specific risk be diversified away by investing in both ANI Pharmaceuticals and Haleon PLC 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 ANI Pharmaceuticals and Haleon PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANI Pharmaceuticals and Haleon PLC, you can compare the effects of market volatilities on ANI Pharmaceuticals and Haleon PLC 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 ANI Pharmaceuticals with a short position of Haleon PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANI Pharmaceuticals and Haleon PLC.
Diversification Opportunities for ANI Pharmaceuticals and Haleon PLC
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANI and Haleon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ANI Pharmaceuticals and Haleon PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon PLC and ANI Pharmaceuticals 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 ANI Pharmaceuticals are associated (or correlated) with Haleon PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon PLC has no effect on the direction of ANI Pharmaceuticals i.e., ANI Pharmaceuticals and Haleon PLC go up and down completely randomly.
Pair Corralation between ANI Pharmaceuticals and Haleon PLC
Assuming the 90 days trading horizon ANI Pharmaceuticals is expected to generate 0.98 times more return on investment than Haleon PLC. However, ANI Pharmaceuticals is 1.02 times less risky than Haleon PLC. It trades about 0.04 of its potential returns per unit of risk. Haleon PLC is currently generating about 0.03 per unit of risk. If you would invest 3,760 in ANI Pharmaceuticals on September 3, 2024 and sell it today you would earn a total of 1,640 from holding ANI Pharmaceuticals or generate 43.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANI Pharmaceuticals vs. Haleon PLC
Performance |
| Timeline |
| ANI Pharmaceuticals |
| Haleon PLC |
ANI Pharmaceuticals and Haleon PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANI Pharmaceuticals and Haleon PLC
The main advantage of trading using opposite ANI Pharmaceuticals and Haleon PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANI Pharmaceuticals position performs unexpectedly, Haleon PLC 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 Haleon PLC will offset losses from the drop in Haleon PLC's long position.| ANI Pharmaceuticals vs. Merck KGaA | ANI Pharmaceuticals vs. CanSino Biologics | ANI Pharmaceuticals vs. Superior Plus Corp | ANI Pharmaceuticals vs. NMI Holdings |
| Haleon PLC vs. Information Services International Dentsu | Haleon PLC vs. PLAYSTUDIOS A DL 0001 | Haleon PLC vs. InPlay Oil Corp | Haleon PLC vs. COLUMBIA SPORTSWEAR |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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