Correlation Between Supernus Pharmaceuticals and ANI Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Supernus Pharmaceuticals 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 Supernus Pharmaceuticals and ANI Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supernus Pharmaceuticals and ANI Pharmaceuticals, you can compare the effects of market volatilities on Supernus Pharmaceuticals 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 Supernus Pharmaceuticals with a short position of ANI Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supernus Pharmaceuticals and ANI Pharmaceuticals.
Diversification Opportunities for Supernus Pharmaceuticals and ANI Pharmaceuticals
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Supernus and ANI is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Supernus Pharmaceuticals and ANI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANI Pharmaceuticals and Supernus Pharmaceuticals 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 Supernus Pharmaceuticals 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 Supernus Pharmaceuticals i.e., Supernus Pharmaceuticals and ANI Pharmaceuticals go up and down completely randomly.
Pair Corralation between Supernus Pharmaceuticals and ANI Pharmaceuticals
Given the investment horizon of 90 days Supernus Pharmaceuticals is expected to generate 1.0 times more return on investment than ANI Pharmaceuticals. However, Supernus Pharmaceuticals is as risky as ANI Pharmaceuticals. It trades about 0.07 of its potential returns per unit of risk. ANI Pharmaceuticals is currently generating about 0.02 per unit of risk. If you would invest 2,768 in Supernus Pharmaceuticals on August 28, 2024 and sell it today you would earn a total of 842.00 from holding Supernus Pharmaceuticals or generate 30.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supernus Pharmaceuticals vs. ANI Pharmaceuticals
Performance |
| Timeline |
| Supernus Pharmaceuticals |
| ANI Pharmaceuticals |
Supernus Pharmaceuticals and ANI Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supernus Pharmaceuticals and ANI Pharmaceuticals
The main advantage of trading using opposite Supernus Pharmaceuticals and ANI Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supernus Pharmaceuticals 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.| Supernus Pharmaceuticals vs. Prestige Brand Holdings | Supernus Pharmaceuticals vs. Evotec SE ADR | Supernus Pharmaceuticals vs. Collegium Pharmaceutical | Supernus Pharmaceuticals 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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