Correlation Between Zura Bio and Anixa Biosciences
Can any of the company-specific risk be diversified away by investing in both Zura Bio and Anixa Biosciences 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 Zura Bio and Anixa Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and Anixa Biosciences, you can compare the effects of market volatilities on Zura Bio and Anixa Biosciences 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 Zura Bio with a short position of Anixa Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Anixa Biosciences.
Diversification Opportunities for Zura Bio and Anixa Biosciences
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zura and Anixa is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Anixa Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anixa Biosciences and Zura Bio 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 Zura Bio Limited are associated (or correlated) with Anixa Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anixa Biosciences has no effect on the direction of Zura Bio i.e., Zura Bio and Anixa Biosciences go up and down completely randomly.
Pair Corralation between Zura Bio and Anixa Biosciences
Given the investment horizon of 90 days Zura Bio Limited is expected to generate 3.83 times more return on investment than Anixa Biosciences. However, Zura Bio is 3.83 times more volatile than Anixa Biosciences. It trades about 0.02 of its potential returns per unit of risk. Anixa Biosciences is currently generating about 0.0 per unit of risk. If you would invest 816.00 in Zura Bio Limited on August 25, 2024 and sell it today you would lose (543.00) from holding Zura Bio Limited or give up 66.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Zura Bio Limited vs. Anixa Biosciences
Performance |
| Timeline |
| Zura Bio Limited |
| Anixa Biosciences |
Zura Bio and Anixa Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and Anixa Biosciences
The main advantage of trading using opposite Zura Bio and Anixa Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio position performs unexpectedly, Anixa Biosciences 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 Anixa Biosciences will offset losses from the drop in Anixa Biosciences' long position.| Zura Bio vs. Lipocine | Zura Bio vs. Tritent International Agriculture | Zura Bio vs. Park Ohio Holdings | Zura Bio vs. Nuvalent |
| Anixa Biosciences vs. Cue Biopharma | Anixa Biosciences vs. INmune Bio | Anixa Biosciences vs. In8bio Inc | Anixa Biosciences vs. PolyPid |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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