Correlation Between Acrivon Therapeutics, and Aura Biosciences
Can any of the company-specific risk be diversified away by investing in both Acrivon Therapeutics, and Aura 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 Acrivon Therapeutics, and Aura Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acrivon Therapeutics, Common and Aura Biosciences, you can compare the effects of market volatilities on Acrivon Therapeutics, and Aura 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 Acrivon Therapeutics, with a short position of Aura Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acrivon Therapeutics, and Aura Biosciences.
Diversification Opportunities for Acrivon Therapeutics, and Aura Biosciences
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Acrivon and Aura is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Acrivon Therapeutics, Common and Aura Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura Biosciences and Acrivon 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 Acrivon Therapeutics, Common are associated (or correlated) with Aura Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Biosciences has no effect on the direction of Acrivon Therapeutics, i.e., Acrivon Therapeutics, and Aura Biosciences go up and down completely randomly.
Pair Corralation between Acrivon Therapeutics, and Aura Biosciences
Given the investment horizon of 90 days Acrivon Therapeutics, Common is expected to generate 1.7 times more return on investment than Aura Biosciences. However, Acrivon Therapeutics, is 1.7 times more volatile than Aura Biosciences. It trades about -0.08 of its potential returns per unit of risk. Aura Biosciences is currently generating about -0.32 per unit of risk. If you would invest 817.00 in Acrivon Therapeutics, Common on August 29, 2024 and sell it today you would lose (82.00) from holding Acrivon Therapeutics, Common or give up 10.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acrivon Therapeutics, Common vs. Aura Biosciences
Performance |
| Timeline |
| Acrivon Therapeutics, |
| Aura Biosciences |
Acrivon Therapeutics, and Aura Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acrivon Therapeutics, and Aura Biosciences
The main advantage of trading using opposite Acrivon Therapeutics, and Aura Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acrivon Therapeutics, position performs unexpectedly, Aura 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 Aura Biosciences will offset losses from the drop in Aura Biosciences' long position.| Acrivon Therapeutics, vs. Eliem Therapeutics | Acrivon Therapeutics, vs. Scpharmaceuticals | Acrivon Therapeutics, vs. Milestone Pharmaceuticals | Acrivon Therapeutics, vs. Seres Therapeutics |
| Aura Biosciences vs. Aerovate Therapeutics | Aura Biosciences vs. Adagene | Aura Biosciences vs. Acrivon Therapeutics, Common | Aura Biosciences vs. Rezolute |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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