Correlation Between Better Therapeutics and AN2 Therapeutics
Can any of the company-specific risk be diversified away by investing in both Better Therapeutics and AN2 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 Better Therapeutics and AN2 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Better Therapeutics and AN2 Therapeutics, you can compare the effects of market volatilities on Better Therapeutics and AN2 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 Better Therapeutics with a short position of AN2 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Better Therapeutics and AN2 Therapeutics.
Diversification Opportunities for Better Therapeutics and AN2 Therapeutics
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Better and AN2 is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Better Therapeutics and AN2 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AN2 Therapeutics and Better 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 Better Therapeutics are associated (or correlated) with AN2 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AN2 Therapeutics has no effect on the direction of Better Therapeutics i.e., Better Therapeutics and AN2 Therapeutics go up and down completely randomly.
Pair Corralation between Better Therapeutics and AN2 Therapeutics
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 Together |
| Strength | Insignificant |
| Accuracy | 2.22% |
| Values | Daily Returns |
Better Therapeutics vs. AN2 Therapeutics
Performance |
| Timeline |
| Better Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AN2 Therapeutics |
Better Therapeutics and AN2 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Better Therapeutics and AN2 Therapeutics
The main advantage of trading using opposite Better Therapeutics and AN2 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Better Therapeutics position performs unexpectedly, AN2 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 AN2 Therapeutics will offset losses from the drop in AN2 Therapeutics' long position.| Better Therapeutics vs. ABVC Biopharma | Better Therapeutics vs. Indaptus Therapeutics | Better Therapeutics vs. Pasithea Therapeutics Corp | Better Therapeutics vs. Forte Biosciences |
| AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |