Correlation Between Affimed NV and Cns Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Affimed NV and Cns Pharmaceuticals 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 Cns Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and Cns Pharmaceuticals, you can compare the effects of market volatilities on Affimed NV and Cns Pharmaceuticals 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 Cns Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and Cns Pharmaceuticals.
Diversification Opportunities for Affimed NV and Cns Pharmaceuticals
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Affimed and Cns is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and Cns Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cns Pharmaceuticals 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 Cns Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cns Pharmaceuticals has no effect on the direction of Affimed NV i.e., Affimed NV and Cns Pharmaceuticals go up and down completely randomly.
Pair Corralation between Affimed NV and Cns Pharmaceuticals
Given the investment horizon of 90 days Affimed NV is expected to under-perform the Cns Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Affimed NV is 2.04 times less risky than Cns Pharmaceuticals. The stock trades about -0.13 of its potential returns per unit of risk. The Cns Pharmaceuticals is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Cns Pharmaceuticals on August 25, 2024 and sell it today you would lose (2.00) from holding Cns Pharmaceuticals or give up 14.29% 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. Cns Pharmaceuticals
Performance |
| Timeline |
| Affimed NV |
| Cns Pharmaceuticals |
Affimed NV and Cns Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and Cns Pharmaceuticals
The main advantage of trading using opposite Affimed NV and Cns Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, Cns Pharmaceuticals 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 Cns Pharmaceuticals will offset losses from the drop in Cns Pharmaceuticals' long position.| Affimed NV vs. Eliem Therapeutics | Affimed NV vs. HCW Biologics | Affimed NV vs. Scpharmaceuticals | Affimed NV vs. Milestone Pharmaceuticals |
| Cns Pharmaceuticals vs. ZyVersa Therapeutics | Cns Pharmaceuticals vs. Immix Biopharma | Cns Pharmaceuticals vs. Sonnet Biotherapeutics Holdings | Cns Pharmaceuticals vs. Ocean Biomedical |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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