Correlation Between HCW Biologics and AN2 Therapeutics
Can any of the company-specific risk be diversified away by investing in both HCW Biologics 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 HCW Biologics and AN2 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCW Biologics and AN2 Therapeutics, you can compare the effects of market volatilities on HCW Biologics 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 HCW Biologics with a short position of AN2 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCW Biologics and AN2 Therapeutics.
Diversification Opportunities for HCW Biologics and AN2 Therapeutics
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HCW and AN2 is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HCW Biologics and AN2 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AN2 Therapeutics and HCW Biologics 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 HCW Biologics 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 HCW Biologics i.e., HCW Biologics and AN2 Therapeutics go up and down completely randomly.
Pair Corralation between HCW Biologics and AN2 Therapeutics
Given the investment horizon of 90 days HCW Biologics is expected to generate 12.55 times more return on investment than AN2 Therapeutics. However, HCW Biologics is 12.55 times more volatile than AN2 Therapeutics. It trades about 0.15 of its potential returns per unit of risk. AN2 Therapeutics is currently generating about 0.21 per unit of risk. If you would invest 46.00 in HCW Biologics on August 26, 2024 and sell it today you would earn a total of 31.00 from holding HCW Biologics or generate 67.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HCW Biologics vs. AN2 Therapeutics
Performance |
| Timeline |
| HCW Biologics |
| AN2 Therapeutics |
HCW Biologics and AN2 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCW Biologics and AN2 Therapeutics
The main advantage of trading using opposite HCW Biologics and AN2 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCW Biologics 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.| HCW Biologics vs. Anebulo Pharmaceuticals | HCW Biologics vs. Rezolute | HCW Biologics vs. Eliem Therapeutics | HCW Biologics vs. Molecular Partners AG |
| AN2 Therapeutics vs. Eliem Therapeutics | AN2 Therapeutics vs. HCW Biologics | AN2 Therapeutics vs. Scpharmaceuticals | AN2 Therapeutics vs. Milestone Pharmaceuticals |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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