Correlation Between NYSE Composite and AN2 Therapeutics
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and AN2 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and AN2 Therapeutics, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of AN2 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and AN2 Therapeutics.
Diversification Opportunities for NYSE Composite and AN2 Therapeutics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and AN2 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and AN2 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AN2 Therapeutics and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and AN2 Therapeutics go up and down completely randomly.
Pair Corralation between NYSE Composite and AN2 Therapeutics
Assuming the 90 days trading horizon NYSE Composite is expected to generate 6.43 times less return on investment than AN2 Therapeutics. But when comparing it to its historical volatility, NYSE Composite is 8.86 times less risky than AN2 Therapeutics. It trades about 0.29 of its potential returns per unit of risk. AN2 Therapeutics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 109.00 in AN2 Therapeutics on August 31, 2024 and sell it today you would earn a total of 28.00 from holding AN2 Therapeutics or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. AN2 Therapeutics
Performance |
| Timeline |
NYSE Composite and AN2 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
AN2 Therapeutics
Pair trading matchups for AN2 Therapeutics
Pair Trading with NYSE Composite and AN2 Therapeutics
The main advantage of trading using opposite NYSE Composite and AN2 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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