Correlation Between GH Research and AnaptysBio
Can any of the company-specific risk be diversified away by investing in both GH Research 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 GH Research and AnaptysBio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GH Research PLC and AnaptysBio, you can compare the effects of market volatilities on GH Research 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 GH Research with a short position of AnaptysBio. Check out your portfolio center. Please also check ongoing floating volatility patterns of GH Research and AnaptysBio.
Diversification Opportunities for GH Research and AnaptysBio
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GHRS and AnaptysBio is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding GH Research PLC and AnaptysBio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnaptysBio and GH Research 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 GH Research PLC 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 GH Research i.e., GH Research and AnaptysBio go up and down completely randomly.
Pair Corralation between GH Research and AnaptysBio
Given the investment horizon of 90 days GH Research PLC is expected to generate 1.42 times more return on investment than AnaptysBio. However, GH Research is 1.42 times more volatile than AnaptysBio. It trades about 0.25 of its potential returns per unit of risk. AnaptysBio is currently generating about 0.31 per unit of risk. If you would invest 709.00 in GH Research PLC on October 25, 2024 and sell it today you would earn a total of 171.00 from holding GH Research PLC or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GH Research PLC vs. AnaptysBio
Performance |
| Timeline |
| GH Research PLC |
| AnaptysBio |
GH Research and AnaptysBio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GH Research and AnaptysBio
The main advantage of trading using opposite GH Research and AnaptysBio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GH Research 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.| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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