Correlation Between Affimed NV and PDS Biotechnology
Can any of the company-specific risk be diversified away by investing in both Affimed NV and PDS Biotechnology 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 PDS Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and PDS Biotechnology Corp, you can compare the effects of market volatilities on Affimed NV and PDS Biotechnology 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 PDS Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and PDS Biotechnology.
Diversification Opportunities for Affimed NV and PDS Biotechnology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Affimed and PDS is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and PDS Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PDS Biotechnology Corp 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 PDS Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PDS Biotechnology Corp has no effect on the direction of Affimed NV i.e., Affimed NV and PDS Biotechnology go up and down completely randomly.
Pair Corralation between Affimed NV and PDS Biotechnology
Given the investment horizon of 90 days Affimed NV is expected to generate 1.01 times more return on investment than PDS Biotechnology. However, Affimed NV is 1.01 times more volatile than PDS Biotechnology Corp. It trades about -0.07 of its potential returns per unit of risk. PDS Biotechnology Corp is currently generating about -0.35 per unit of risk. If you would invest 337.00 in Affimed NV on August 27, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affimed NV vs. PDS Biotechnology Corp
Performance |
| Timeline |
| Affimed NV |
| PDS Biotechnology Corp |
Affimed NV and PDS Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and PDS Biotechnology
The main advantage of trading using opposite Affimed NV and PDS Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, PDS Biotechnology 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 PDS Biotechnology will offset losses from the drop in PDS Biotechnology's long position.| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals |
| PDS Biotechnology vs. Mereo BioPharma Group | PDS Biotechnology vs. Terns Pharmaceuticals | PDS Biotechnology vs. Inozyme Pharma | PDS Biotechnology vs. Hookipa Pharma |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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