Correlation Between Replimune and AnaptysBio

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

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

Diversification Opportunities for Replimune and AnaptysBio

-0.01

Correlation Coefficient

Replimune  AnaptysBio

Good diversification

The 3 months correlation between Replimune and AnaptysBio is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Replimune Group and AnaptysBio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnaptysBio and Replimune 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 Replimune Group are associated (or correlated) with AnaptysBio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnaptysBio has no effect on the direction of Replimune i.e., Replimune and AnaptysBio go up and down completely randomly.

Pair Corralation between Replimune and AnaptysBio

Given the investment horizon of 90 days Replimune Group is expected to generate 5.31 times more return on investment than AnaptysBio. However, Replimune is 5.31 times more volatile than AnaptysBio. It trades about 0.08 of its potential returns per unit of risk. AnaptysBio is currently generating about 0.1 per unit of risk. If you would invest  1,001  in Replimune Group on May 5, 2025 and sell it today you would lose (241.00) from holding Replimune Group or give up 24.08% of portfolio value over 90 days.

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

Replimune Group  vs.  AnaptysBio

Replimune Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Replimune Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Replimune disclosed solid returns over the last few months and may actually be approaching a breakup point.

AnaptysBio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AnaptysBio are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, AnaptysBio sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Replimune and AnaptysBio

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

The idea behind Replimune Group and AnaptysBio 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.