Correlation Between Third Harmonic and AN2 Therapeutics
Can any of the company-specific risk be diversified away by investing in both Third Harmonic 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 Third Harmonic and AN2 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Third Harmonic Bio and AN2 Therapeutics, you can compare the effects of market volatilities on Third Harmonic 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 Third Harmonic with a short position of AN2 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Third Harmonic and AN2 Therapeutics.
Diversification Opportunities for Third Harmonic and AN2 Therapeutics
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Third and AN2 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Third Harmonic Bio and AN2 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AN2 Therapeutics and Third Harmonic 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 Third Harmonic Bio 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 Third Harmonic i.e., Third Harmonic and AN2 Therapeutics go up and down completely randomly.
Pair Corralation between Third Harmonic and AN2 Therapeutics
Given the investment horizon of 90 days Third Harmonic is expected to generate 4.17 times less return on investment than AN2 Therapeutics. But when comparing it to its historical volatility, Third Harmonic Bio is 1.8 times less risky than AN2 Therapeutics. It trades about 0.01 of its potential returns per unit of risk. AN2 Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 204.00 in AN2 Therapeutics on September 2, 2024 and sell it today you would lose (37.00) from holding AN2 Therapeutics or give up 18.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Third Harmonic Bio vs. AN2 Therapeutics
Performance |
| Timeline |
| Third Harmonic Bio |
| AN2 Therapeutics |
Third Harmonic and AN2 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Third Harmonic and AN2 Therapeutics
The main advantage of trading using opposite Third Harmonic and AN2 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Third Harmonic 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.| Third Harmonic vs. Sensei Biotherapeutics | Third Harmonic vs. NextCure | Third Harmonic vs. Nuvation Bio | Third Harmonic vs. Cullinan Oncology LLC |
| AN2 Therapeutics vs. Tff Pharmaceuticals | AN2 Therapeutics vs. Eliem Therapeutics | AN2 Therapeutics vs. Inhibrx | AN2 Therapeutics vs. Enliven 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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