Correlation Between Warby Parker and Anteris Technologies

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

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

Diversification Opportunities for Warby Parker and Anteris Technologies

-0.26

Correlation Coefficient

Warby Parker  Anteris Technologies

Very good diversification

The 3 months correlation between Warby and Anteris is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Warby Parker and Anteris Technologies Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Warby Parker 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 Warby Parker are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Warby Parker i.e., Warby Parker and Anteris Technologies go up and down completely randomly.

Pair Corralation between Warby Parker and Anteris Technologies

Given the investment horizon of 90 days Warby Parker is expected to under-perform the Anteris Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Warby Parker is 1.24 times less risky than Anteris Technologies. The stock trades about -0.12 of its potential returns per unit of risk. The Anteris Technologies Global is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  558.00  in Anteris Technologies Global on December 20, 2024 and sell it today you would earn a total of  63.00  from holding Anteris Technologies Global or generate 11.29% return on investment over 90 days.

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

Warby Parker  vs.  Anteris Technologies Global

Warby Parker

Risk-Adjusted Performance

Very Weak

Over the last 90 days Warby Parker has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Anteris Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anteris Technologies Global are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Anteris Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Warby Parker and Anteris Technologies

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

The idea behind Warby Parker and Anteris Technologies Global 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.