Correlation Between PolyPid and Anixa Biosciences

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

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

Diversification Opportunities for PolyPid and Anixa Biosciences

-0.13

Correlation Coefficient

PolyPid  Anixa Biosciences

Good diversification

The 3 months correlation between PolyPid and Anixa is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding PolyPid and Anixa Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anixa Biosciences and PolyPid 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 PolyPid 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 PolyPid i.e., PolyPid and Anixa Biosciences go up and down completely randomly.

Pair Corralation between PolyPid and Anixa Biosciences

Given the investment horizon of 90 days PolyPid is expected to generate 2.45 times less return on investment than Anixa Biosciences. In addition to that, PolyPid is 1.3 times more volatile than Anixa Biosciences. It trades about 0.0 of its total potential returns per unit of risk. Anixa Biosciences is currently generating about 0.01 per unit of volatility. If you would invest  360.00  in Anixa Biosciences on September 2, 2024 and sell it today you would lose (30.00) from holding Anixa Biosciences or give up 8.33% of portfolio value over 90 days.

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

PolyPid  vs.  Anixa Biosciences

PolyPid

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PolyPid has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, PolyPid is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Anixa Biosciences

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Anixa Biosciences are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady forward indicators, Anixa Biosciences may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with PolyPid and Anixa Biosciences

The main advantage of trading using opposite PolyPid and Anixa Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PolyPid 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.

The idea behind PolyPid and Anixa Biosciences 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.