Correlation Between MacroGenics and Annovis BioInc
Can any of the company-specific risk be diversified away by investing in both MacroGenics and Annovis BioInc 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 MacroGenics and Annovis BioInc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MacroGenics and Annovis BioInc, you can compare the effects of market volatilities on MacroGenics and Annovis BioInc 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 MacroGenics with a short position of Annovis BioInc. Check out your portfolio center. Please also check ongoing floating volatility patterns of MacroGenics and Annovis BioInc.
Diversification Opportunities for MacroGenics and Annovis BioInc
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MacroGenics and Annovis is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MacroGenics and Annovis BioInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annovis BioInc and MacroGenics 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 MacroGenics are associated (or correlated) with Annovis BioInc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annovis BioInc has no effect on the direction of MacroGenics i.e., MacroGenics and Annovis BioInc go up and down completely randomly.
Pair Corralation between MacroGenics and Annovis BioInc
Given the investment horizon of 90 days MacroGenics is expected to generate 13.14 times less return on investment than Annovis BioInc. But when comparing it to its historical volatility, MacroGenics is 1.24 times less risky than Annovis BioInc. It trades about 0.02 of its potential returns per unit of risk. Annovis BioInc is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,190 in Annovis BioInc on January 28, 2024 and sell it today you would earn a total of 611.00 from holding Annovis BioInc or generate 51.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
MacroGenics vs. Annovis BioInc
Performance |
Timeline |
MacroGenics |
Annovis BioInc |
MacroGenics and Annovis BioInc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MacroGenics and Annovis BioInc
The main advantage of trading using opposite MacroGenics and Annovis BioInc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MacroGenics position performs unexpectedly, Annovis BioInc 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 Annovis BioInc will offset losses from the drop in Annovis BioInc's long position.MacroGenics vs. Molecular Partners AG | MacroGenics vs. Mineralys Therapeutics Common | MacroGenics vs. AN2 Therapeutics | MacroGenics vs. Pharvaris BV |
Annovis BioInc vs. Cassava Sciences | Annovis BioInc vs. Axsome Therapeutics | Annovis BioInc vs. Reviva Pharmaceuticals Holdings | Annovis BioInc vs. Seres Therapeutics |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |