Correlation Between ATRESMEDIA and ANI Pharmaceuticals

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

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

Diversification Opportunities for ATRESMEDIA and ANI Pharmaceuticals

-0.06

Correlation Coefficient

ATRESMEDIA  ANI Pharmaceuticals

Good diversification

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

Pair Corralation between ATRESMEDIA and ANI Pharmaceuticals

Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.91 times more return on investment than ANI Pharmaceuticals. However, ATRESMEDIA is 1.1 times less risky than ANI Pharmaceuticals. It trades about -0.03 of its potential returns per unit of risk. ANI Pharmaceuticals is currently generating about -0.09 per unit of risk. 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

ATRESMEDIA  vs.  ANI Pharmaceuticals

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.

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.

Pair Trading with ATRESMEDIA and ANI Pharmaceuticals

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

The idea behind ATRESMEDIA and ANI Pharmaceuticals 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 Transaction History module to view history of all your transactions and understand their impact on performance.