Correlation Between ELYM Old and AnaptysBio
Can any of the company-specific risk be diversified away by investing in both ELYM Old and AnaptysBio 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 ELYM Old and AnaptysBio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELYM Old and AnaptysBio, you can compare the effects of market volatilities on ELYM Old and AnaptysBio 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 ELYM Old with a short position of AnaptysBio. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELYM Old and AnaptysBio.
Diversification Opportunities for ELYM Old and AnaptysBio
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ELYM and AnaptysBio is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ELYM Old and AnaptysBio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnaptysBio and ELYM Old 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 ELYM Old are associated (or correlated) with AnaptysBio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnaptysBio has no effect on the direction of ELYM Old i.e., ELYM Old and AnaptysBio go up and down completely randomly.
Pair Corralation between ELYM Old and AnaptysBio
If you would invest 1,500 in AnaptysBio on October 20, 2024 and sell it today you would earn a total of 85.00 from holding AnaptysBio or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
ELYM Old vs. AnaptysBio
Performance |
| Timeline |
| ELYM Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AnaptysBio |
ELYM Old and AnaptysBio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELYM Old and AnaptysBio
The main advantage of trading using opposite ELYM Old and AnaptysBio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELYM Old position performs unexpectedly, AnaptysBio 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 AnaptysBio will offset losses from the drop in AnaptysBio's long position.The idea behind ELYM Old and AnaptysBio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AnaptysBio vs. Crinetics Pharmaceuticals | AnaptysBio vs. Rhythm Pharmaceuticals | AnaptysBio vs. Kura Oncology | AnaptysBio vs. CytomX Therapeutics |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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