Correlation Between Acorda Therapeutics and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Acorda Therapeutics and Akanda Corp 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 Acorda Therapeutics and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acorda Therapeutics and Akanda Corp, you can compare the effects of market volatilities on Acorda Therapeutics and Akanda Corp 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 Acorda Therapeutics with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acorda Therapeutics and Akanda Corp.
Diversification Opportunities for Acorda Therapeutics and Akanda Corp
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acorda and Akanda is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Acorda Therapeutics and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and Acorda Therapeutics 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 Acorda Therapeutics are associated (or correlated) with Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Acorda Therapeutics i.e., Acorda Therapeutics and Akanda Corp go up and down completely randomly.
Pair Corralation between Acorda Therapeutics and Akanda Corp
If you would invest 168.00 in Akanda Corp on October 25, 2024 and sell it today you would lose (3.00) from holding Akanda Corp or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.67% |
| Values | Daily Returns |
Acorda Therapeutics vs. Akanda Corp
Performance |
| Timeline |
| Acorda Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Akanda Corp |
Acorda Therapeutics and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acorda Therapeutics and Akanda Corp
The main advantage of trading using opposite Acorda Therapeutics and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorda Therapeutics position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Acorda Therapeutics vs. Shionogi Co | Acorda Therapeutics vs. Pacira BioSciences, | Acorda Therapeutics vs. Sunshine Biopharma Warrant | Acorda Therapeutics vs. Biofrontera |
| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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