Correlation Between ANI Pharmaceuticals and Solid Biosciences

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

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

Diversification Opportunities for ANI Pharmaceuticals and Solid Biosciences

-0.81

Correlation Coefficient

ANI Pharmaceuticals  Solid Biosciences

Pay attention - limited upside

The 3 months correlation between ANI and Solid is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ANI Pharmaceuticals and Solid Biosciences LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Biosciences LLC and ANI Pharmaceuticals 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 ANI Pharmaceuticals are associated (or correlated) with Solid Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Biosciences LLC has no effect on the direction of ANI Pharmaceuticals i.e., ANI Pharmaceuticals and Solid Biosciences go up and down completely randomly.

Pair Corralation between ANI Pharmaceuticals and Solid Biosciences

Given the investment horizon of 90 days ANI Pharmaceuticals is expected to generate 0.6 times more return on investment than Solid Biosciences. However, ANI Pharmaceuticals is 1.67 times less risky than Solid Biosciences. It trades about 0.22 of its potential returns per unit of risk. Solid Biosciences LLC is currently generating about -0.01 per unit of risk. If you would invest  6,541  in ANI Pharmaceuticals on July 20, 2025 and sell it today you would earn a total of  2,938  from holding ANI Pharmaceuticals or generate 44.92% return on investment over 90 days.

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

ANI Pharmaceuticals  vs.  Solid Biosciences LLC

ANI Pharmaceuticals

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ANI Pharmaceuticals are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting forward indicators, ANI Pharmaceuticals reported solid returns over the last few months and may actually be approaching a breakup point.

Solid Biosciences LLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Solid Biosciences LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Solid Biosciences is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ANI Pharmaceuticals and Solid Biosciences

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

The idea behind ANI Pharmaceuticals and Solid Biosciences LLC 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..