Correlation Between AN2 Therapeutics and Indaptus Therapeutics
Can any of the company-specific risk be diversified away by investing in both AN2 Therapeutics and Indaptus 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 AN2 Therapeutics and Indaptus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AN2 Therapeutics and Indaptus Therapeutics, you can compare the effects of market volatilities on AN2 Therapeutics and Indaptus 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 AN2 Therapeutics with a short position of Indaptus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AN2 Therapeutics and Indaptus Therapeutics.
Diversification Opportunities for AN2 Therapeutics and Indaptus Therapeutics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AN2 and Indaptus is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding AN2 Therapeutics and Indaptus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indaptus Therapeutics and AN2 Therapeutics 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 AN2 Therapeutics are associated (or correlated) with Indaptus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indaptus Therapeutics has no effect on the direction of AN2 Therapeutics i.e., AN2 Therapeutics and Indaptus Therapeutics go up and down completely randomly.
Pair Corralation between AN2 Therapeutics and Indaptus Therapeutics
Given the investment horizon of 90 days AN2 Therapeutics is expected to generate 0.68 times more return on investment than Indaptus Therapeutics. However, AN2 Therapeutics is 1.47 times less risky than Indaptus Therapeutics. It trades about 0.11 of its potential returns per unit of risk. Indaptus Therapeutics is currently generating about -0.02 per unit of risk. If you would invest 105.00 in AN2 Therapeutics on September 25, 2024 and sell it today you would earn a total of 35.00 from holding AN2 Therapeutics or generate 33.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AN2 Therapeutics vs. Indaptus Therapeutics
Performance |
Timeline |
AN2 Therapeutics |
Indaptus Therapeutics |
AN2 Therapeutics and Indaptus Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AN2 Therapeutics and Indaptus Therapeutics
The main advantage of trading using opposite AN2 Therapeutics and Indaptus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AN2 Therapeutics position performs unexpectedly, Indaptus 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 Indaptus Therapeutics will offset losses from the drop in Indaptus Therapeutics' long position.AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
Indaptus Therapeutics vs. Fate Therapeutics | Indaptus Therapeutics vs. Caribou Biosciences | Indaptus Therapeutics vs. Arcus Biosciences | Indaptus Therapeutics vs. Karyopharm 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |