Correlation Between ANI Pharmaceuticals and ATRESMEDIA

Can any of the company-specific risk be diversified away by investing in both ANI Pharmaceuticals and ATRESMEDIA 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 ANI Pharmaceuticals and ATRESMEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ANI Pharmaceuticals and ATRESMEDIA, you can compare the effects of market volatilities on ANI Pharmaceuticals and ATRESMEDIA 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 ANI Pharmaceuticals with a short position of ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANI Pharmaceuticals and ATRESMEDIA.

Diversification Opportunities for ANI Pharmaceuticals and ATRESMEDIA

-0.06

Correlation Coefficient

ANI Pharmaceuticals  ATRESMEDIA

Good diversification

The 3 months correlation between ANI and ATRESMEDIA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANI Pharmaceuticals and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA and ANI 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 ANI Pharmaceuticals are associated (or correlated) with ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of ANI Pharmaceuticals i.e., ANI Pharmaceuticals and ATRESMEDIA go up and down completely randomly.

Pair Corralation between ANI Pharmaceuticals and ATRESMEDIA

Assuming the 90 days trading horizon ANI Pharmaceuticals is expected to under-perform the ATRESMEDIA. In addition to that, ANI Pharmaceuticals is 1.1 times more volatile than ATRESMEDIA. It trades about -0.09 of its total potential returns per unit of risk. ATRESMEDIA is currently generating about -0.03 per unit of volatility. If you would invest  447.00  in ATRESMEDIA on October 8, 2024 and sell it today you would lose (4.00) from holding ATRESMEDIA or give up 0.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ANI Pharmaceuticals  vs.  ATRESMEDIA

ANI Pharmaceuticals

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ANI Pharmaceuticals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ANI Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in February 2025.

ATRESMEDIA

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ATRESMEDIA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, ATRESMEDIA is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ANI Pharmaceuticals and ATRESMEDIA

The main advantage of trading using opposite ANI Pharmaceuticals and ATRESMEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANI Pharmaceuticals position performs unexpectedly, ATRESMEDIA 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 ATRESMEDIA will offset losses from the drop in ATRESMEDIA's long position.

The idea behind ANI Pharmaceuticals and ATRESMEDIA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.