Correlation Between Phibro Animal and ANI Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Phibro Animal and ANI Pharmaceuticals 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 Phibro Animal and ANI Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phibro Animal Health and ANI Pharmaceuticals, you can compare the effects of market volatilities on Phibro Animal and ANI Pharmaceuticals 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 Phibro Animal with a short position of ANI Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phibro Animal and ANI Pharmaceuticals.
Diversification Opportunities for Phibro Animal and ANI Pharmaceuticals
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phibro and ANI is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Phibro Animal Health and ANI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANI Pharmaceuticals and Phibro Animal 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 Phibro Animal Health are associated (or correlated) with ANI Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANI Pharmaceuticals has no effect on the direction of Phibro Animal i.e., Phibro Animal and ANI Pharmaceuticals go up and down completely randomly.
Pair Corralation between Phibro Animal and ANI Pharmaceuticals
Given the investment horizon of 90 days Phibro Animal Health is expected to generate 0.99 times more return on investment than ANI Pharmaceuticals. However, Phibro Animal Health is 1.01 times less risky than ANI Pharmaceuticals. It trades about 0.1 of its potential returns per unit of risk. ANI Pharmaceuticals is currently generating about -0.05 per unit of risk. If you would invest 2,081 in Phibro Animal Health on August 23, 2024 and sell it today you would earn a total of 295.00 from holding Phibro Animal Health or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phibro Animal Health vs. ANI Pharmaceuticals
Performance |
| Timeline |
| Phibro Animal Health |
| ANI Pharmaceuticals |
Phibro Animal and ANI Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phibro Animal and ANI Pharmaceuticals
The main advantage of trading using opposite Phibro Animal and ANI Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phibro Animal position performs unexpectedly, ANI Pharmaceuticals 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 ANI Pharmaceuticals will offset losses from the drop in ANI Pharmaceuticals' long position.| Phibro Animal vs. Pacira BioSciences, | Phibro Animal vs. Dr Reddys Laboratories | Phibro Animal vs. Collegium Pharmaceutical | Phibro Animal vs. ANI Pharmaceuticals |
| ANI Pharmaceuticals vs. Phibro Animal Health | ANI Pharmaceuticals vs. Prestige Brand Holdings | ANI Pharmaceuticals vs. Alkermes Plc | ANI Pharmaceuticals vs. Dr Reddys Laboratories |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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