Correlation Between Aceragen and Akari Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aceragen and Akari Therapeutics 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 Aceragen and Akari Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aceragen and Akari Therapeutics PLC, you can compare the effects of market volatilities on Aceragen and Akari Therapeutics 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 Aceragen with a short position of Akari Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aceragen and Akari Therapeutics.
Diversification Opportunities for Aceragen and Akari Therapeutics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aceragen and Akari is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aceragen and Akari Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akari Therapeutics PLC and Aceragen 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 Aceragen are associated (or correlated) with Akari Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akari Therapeutics PLC has no effect on the direction of Aceragen i.e., Aceragen and Akari Therapeutics go up and down completely randomly.
Pair Corralation between Aceragen and Akari Therapeutics
If you would invest 75.00 in Aceragen on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Aceragen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aceragen vs. Akari Therapeutics PLC
Performance |
| Timeline |
| Aceragen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Akari Therapeutics PLC |
Aceragen and Akari Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aceragen and Akari Therapeutics
The main advantage of trading using opposite Aceragen and Akari Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aceragen position performs unexpectedly, Akari Therapeutics 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 Akari Therapeutics will offset losses from the drop in Akari Therapeutics' long position.| Aceragen vs. Addex Therapeutics | Aceragen vs. Soligenix | Aceragen vs. Avenue Therapeutics | Aceragen vs. Akari Therapeutics PLC |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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