Correlation Between SIMCERE PHARMAC and ANI Pharmaceuticals

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

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

Diversification Opportunities for SIMCERE PHARMAC and ANI Pharmaceuticals

0.0

Correlation Coefficient

SIMCERE PHARMAC  ANI Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between SIMCERE and ANI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SIMCERE PHARMAC GRP and ANI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANI Pharmaceuticals and SIMCERE PHARMAC 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 SIMCERE PHARMAC GRP 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 SIMCERE PHARMAC i.e., SIMCERE PHARMAC and ANI Pharmaceuticals go up and down completely randomly.

Pair Corralation between SIMCERE PHARMAC and ANI Pharmaceuticals

If you would invest (100.00) in SIMCERE PHARMAC GRP on April 24, 2025 and sell it today you would earn a total of  100.00  from holding SIMCERE PHARMAC GRP 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

SIMCERE PHARMAC GRP  vs.  ANI Pharmaceuticals

SIMCERE PHARMAC GRP

Risk-Adjusted Performance

OK

Over the last 90 days SIMCERE PHARMAC GRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SIMCERE PHARMAC is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ANI Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days ANI Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with SIMCERE PHARMAC and ANI Pharmaceuticals

The main advantage of trading using opposite SIMCERE PHARMAC and ANI Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIMCERE PHARMAC 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 SIMCERE PHARMAC GRP 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.