Correlation Between Affimed NV and Inozyme Pharma
Can any of the company-specific risk be diversified away by investing in both Affimed NV and Inozyme 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 Affimed NV and Inozyme Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and Inozyme Pharma, you can compare the effects of market volatilities on Affimed NV and Inozyme 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 Affimed NV with a short position of Inozyme Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and Inozyme Pharma.
Diversification Opportunities for Affimed NV and Inozyme Pharma
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Affimed and Inozyme is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and Inozyme Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inozyme Pharma 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 Inozyme Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inozyme Pharma has no effect on the direction of Affimed NV i.e., Affimed NV and Inozyme Pharma go up and down completely randomly.
Pair Corralation between Affimed NV and Inozyme Pharma
Given the investment horizon of 90 days Affimed NV is expected to generate 1.05 times more return on investment than Inozyme Pharma. However, Affimed NV is 1.05 times more volatile than Inozyme Pharma. It trades about -0.18 of its potential returns per unit of risk. Inozyme Pharma is currently generating about -0.27 per unit of risk. If you would invest 420.00 in Affimed NV on August 26, 2024 and sell it today you would lose (158.00) from holding Affimed NV or give up 37.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affimed NV vs. Inozyme Pharma
Performance |
| Timeline |
| Affimed NV |
| Inozyme Pharma |
Affimed NV and Inozyme Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and Inozyme Pharma
The main advantage of trading using opposite Affimed NV and Inozyme Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, Inozyme 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 Inozyme Pharma will offset losses from the drop in Inozyme Pharma's long position.| Affimed NV vs. Eliem Therapeutics | Affimed NV vs. HCW Biologics | Affimed NV vs. Scpharmaceuticals | Affimed NV vs. Milestone Pharmaceuticals |
| Inozyme Pharma vs. Day One Biopharmaceuticals | Inozyme Pharma vs. X4 Pharmaceuticals | Inozyme Pharma vs. Acumen Pharmaceuticals | Inozyme Pharma vs. Mereo BioPharma Group |
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.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |