Correlation Between AC Immune and OKYO Pharma
Can any of the company-specific risk be diversified away by investing in both AC Immune and OKYO Pharma 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 AC Immune and OKYO Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AC Immune and OKYO Pharma Ltd, you can compare the effects of market volatilities on AC Immune and OKYO Pharma 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 AC Immune with a short position of OKYO Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of AC Immune and OKYO Pharma.
Diversification Opportunities for AC Immune and OKYO Pharma
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACIU and OKYO is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AC Immune and OKYO Pharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OKYO Pharma and AC Immune 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 AC Immune are associated (or correlated) with OKYO Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OKYO Pharma has no effect on the direction of AC Immune i.e., AC Immune and OKYO Pharma go up and down completely randomly.
Pair Corralation between AC Immune and OKYO Pharma
Given the investment horizon of 90 days AC Immune is expected to under-perform the OKYO Pharma. But the stock apears to be less risky and, when comparing its historical volatility, AC Immune is 1.71 times less risky than OKYO Pharma. The stock trades about -0.06 of its potential returns per unit of risk. The OKYO Pharma Ltd is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 143.00 in OKYO Pharma Ltd on September 1, 2024 and sell it today you would lose (41.00) from holding OKYO Pharma Ltd or give up 28.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AC Immune vs. OKYO Pharma Ltd
Performance |
| Timeline |
| AC Immune |
| OKYO Pharma |
AC Immune and OKYO Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AC Immune and OKYO Pharma
The main advantage of trading using opposite AC Immune and OKYO Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AC Immune position performs unexpectedly, OKYO Pharma 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 OKYO Pharma will offset losses from the drop in OKYO Pharma's long position.| AC Immune vs. Pmv Pharmaceuticals | AC Immune vs. Eliem Therapeutics | AC Immune vs. MediciNova | AC Immune vs. Pharvaris BV |
| OKYO Pharma vs. Candel Therapeutics | OKYO Pharma vs. Anebulo Pharmaceuticals | OKYO Pharma vs. Cingulate Warrants | OKYO Pharma vs. Unicycive Therapeutics |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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