Correlation Between Affimed NV and Zura Bio
Can any of the company-specific risk be diversified away by investing in both Affimed NV and Zura Bio 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 Zura Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and Zura Bio Limited, you can compare the effects of market volatilities on Affimed NV and Zura Bio 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 Zura Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and Zura Bio.
Diversification Opportunities for Affimed NV and Zura Bio
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Affimed and Zura is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and Zura Bio Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zura Bio Limited 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 Zura Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zura Bio Limited has no effect on the direction of Affimed NV i.e., Affimed NV and Zura Bio go up and down completely randomly.
Pair Corralation between Affimed NV and Zura Bio
Given the investment horizon of 90 days Affimed NV is expected to generate 0.91 times more return on investment than Zura Bio. However, Affimed NV is 1.1 times less risky than Zura Bio. It trades about -0.08 of its potential returns per unit of risk. Zura Bio Limited is currently generating about -0.24 per unit of risk. If you would invest 323.00 in Affimed NV on September 1, 2024 and sell it today you would lose (39.00) from holding Affimed NV or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affimed NV vs. Zura Bio Limited
Performance |
| Timeline |
| Affimed NV |
| Zura Bio Limited |
Affimed NV and Zura Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and Zura Bio
The main advantage of trading using opposite Affimed NV and Zura Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, Zura Bio 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 Zura Bio will offset losses from the drop in Zura Bio's long position.| Affimed NV vs. Tff Pharmaceuticals | Affimed NV vs. Eliem Therapeutics | Affimed NV vs. Inhibrx | Affimed NV vs. Enliven Therapeutics |
| Zura Bio vs. Tff Pharmaceuticals | Zura Bio vs. Eliem Therapeutics | Zura Bio vs. Inhibrx | Zura Bio vs. Enliven 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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