Correlation Between Caterpillar and Anpac Bio
Can any of the company-specific risk be diversified away by investing in both Caterpillar and Anpac Bio 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 Caterpillar and Anpac Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caterpillar and Anpac Bio Medical, you can compare the effects of market volatilities on Caterpillar and Anpac Bio 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 Caterpillar with a short position of Anpac Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Anpac Bio.
Diversification Opportunities for Caterpillar and Anpac Bio
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caterpillar and Anpac is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and Anpac Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anpac Bio Medical and Caterpillar 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 Caterpillar are associated (or correlated) with Anpac Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anpac Bio Medical has no effect on the direction of Caterpillar i.e., Caterpillar and Anpac Bio go up and down completely randomly.
Pair Corralation between Caterpillar and Anpac Bio
If you would invest 437.00 in Anpac Bio Medical on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Anpac Bio Medical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.44% |
| Values | Daily Returns |
Caterpillar vs. Anpac Bio Medical
Performance |
| Timeline |
| Caterpillar |
| Anpac Bio Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caterpillar and Anpac Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and Anpac Bio
The main advantage of trading using opposite Caterpillar and Anpac Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, Anpac Bio 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 Anpac Bio will offset losses from the drop in Anpac Bio's long position.| Caterpillar vs. Victory Integrity Smallmid Cap | Caterpillar vs. Hilton Worldwide Holdings | Caterpillar vs. NVIDIA | Caterpillar vs. JPMorgan Chase Co |
| Anpac Bio vs. Anebulo Pharmaceuticals | Anpac Bio vs. Aerovate Therapeutics | Anpac Bio vs. Acrivon Therapeutics, Common | Anpac Bio vs. Opthea |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |