Correlation Between Affimed NV and Black Diamond
Can any of the company-specific risk be diversified away by investing in both Affimed NV and Black Diamond 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 Affimed NV and Black Diamond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and Black Diamond Therapeutics, you can compare the effects of market volatilities on Affimed NV and Black Diamond 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 Affimed NV with a short position of Black Diamond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and Black Diamond.
Diversification Opportunities for Affimed NV and Black Diamond
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Affimed and Black is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and Black Diamond Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Diamond Therap and Affimed NV 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 Affimed NV are associated (or correlated) with Black Diamond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Diamond Therap has no effect on the direction of Affimed NV i.e., Affimed NV and Black Diamond go up and down completely randomly.
Pair Corralation between Affimed NV and Black Diamond
Given the investment horizon of 90 days Affimed NV is expected to generate 1.27 times more return on investment than Black Diamond. However, Affimed NV is 1.27 times more volatile than Black Diamond Therapeutics. It trades about -0.07 of its potential returns per unit of risk. Black Diamond Therapeutics is currently generating about -0.14 per unit of risk. If you would invest 337.00 in Affimed NV on August 28, 2024 and sell it today you would lose (37.00) from holding Affimed NV or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affimed NV vs. Black Diamond Therapeutics
Performance |
| Timeline |
| Affimed NV |
| Black Diamond Therap |
Affimed NV and Black Diamond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and Black Diamond
The main advantage of trading using opposite Affimed NV and Black Diamond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, Black Diamond 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 Black Diamond will offset losses from the drop in Black Diamond's long position.| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals |
| Black Diamond vs. Passage Bio | Black Diamond vs. Alector | Black Diamond vs. Revolution Medicines | Black Diamond vs. Stoke 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |