Correlation Between FIXX Old and AnaptysBio

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

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

Diversification Opportunities for FIXX Old and AnaptysBio

0.0

Correlation Coefficient

FIXX Old  AnaptysBio

Pay attention - limited upside

The 3 months correlation between FIXX and AnaptysBio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FIXX Old and AnaptysBio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnaptysBio and FIXX Old 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 FIXX Old are associated (or correlated) with AnaptysBio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnaptysBio has no effect on the direction of FIXX Old i.e., FIXX Old and AnaptysBio go up and down completely randomly.

Pair Corralation between FIXX Old and AnaptysBio

If you would invest (100.00) in FIXX Old on November 28, 2024 and sell it today you would earn a total of  100.00  from holding FIXX Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

FIXX Old  vs.  AnaptysBio

FIXX Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days FIXX Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, FIXX Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

AnaptysBio

Risk-Adjusted Performance

Very Weak

Over the last 90 days AnaptysBio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with FIXX Old and AnaptysBio

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

The idea behind FIXX Old and AnaptysBio 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.

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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.