Correlation Between Amphastar and ANI Pharmaceuticals

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

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

Diversification Opportunities for Amphastar and ANI Pharmaceuticals

-0.3

Correlation Coefficient

Amphastar  ANI Pharmaceuticals

Very good diversification

The 3 months correlation between Amphastar and ANI is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and ANI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANI Pharmaceuticals and Amphastar 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 Amphastar P 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 Amphastar i.e., Amphastar and ANI Pharmaceuticals go up and down completely randomly.

Pair Corralation between Amphastar and ANI Pharmaceuticals

Given the investment horizon of 90 days Amphastar P is expected to under-perform the ANI Pharmaceuticals. In addition to that, Amphastar is 1.04 times more volatile than ANI Pharmaceuticals. It trades about -0.11 of its total potential returns per unit of risk. ANI Pharmaceuticals is currently generating about -0.09 per unit of volatility. If you would invest  7,256  in ANI Pharmaceuticals on May 4, 2025 and sell it today you would lose (863.00) from holding ANI Pharmaceuticals or give up 11.89% of portfolio value over 90 days.

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

Amphastar P  vs.  ANI Pharmaceuticals

Amphastar P

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amphastar P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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. Even with latest conflicting performance, the Stock's forward indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Amphastar and ANI Pharmaceuticals

The main advantage of trading using opposite Amphastar and ANI Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar 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 Amphastar P 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.