Correlation Between Harmony Biosciences and AnaptysBio
Can any of the company-specific risk be diversified away by investing in both Harmony Biosciences 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 Harmony Biosciences and AnaptysBio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harmony Biosciences Holdings and AnaptysBio, you can compare the effects of market volatilities on Harmony Biosciences 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 Harmony Biosciences with a short position of AnaptysBio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Biosciences and AnaptysBio.
Diversification Opportunities for Harmony Biosciences and AnaptysBio
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harmony and AnaptysBio is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Biosciences Holdings and AnaptysBio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnaptysBio and Harmony Biosciences 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 Harmony Biosciences Holdings 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 Harmony Biosciences i.e., Harmony Biosciences and AnaptysBio go up and down completely randomly.
Pair Corralation between Harmony Biosciences and AnaptysBio
Given the investment horizon of 90 days Harmony Biosciences Holdings is expected to generate 0.75 times more return on investment than AnaptysBio. However, Harmony Biosciences Holdings is 1.33 times less risky than AnaptysBio. It trades about 0.01 of its potential returns per unit of risk. AnaptysBio is currently generating about -0.1 per unit of risk. If you would invest 3,575 in Harmony Biosciences Holdings on August 27, 2024 and sell it today you would lose (104.00) from holding Harmony Biosciences Holdings or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmony Biosciences Holdings vs. AnaptysBio
Performance |
| Timeline |
| Harmony Biosciences |
| AnaptysBio |
Harmony Biosciences and AnaptysBio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Biosciences and AnaptysBio
The main advantage of trading using opposite Harmony Biosciences and AnaptysBio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Biosciences 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.| Harmony Biosciences vs. Keros Therapeutics | Harmony Biosciences vs. Janux Therapeutics | Harmony Biosciences vs. Fennec Pharmaceuticals | Harmony Biosciences vs. Edgewise Therapeutics |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |