Correlation Between Akanda Corp and Abcellera Biologics
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Abcellera Biologics 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 Akanda Corp and Abcellera Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Abcellera Biologics, you can compare the effects of market volatilities on Akanda Corp and Abcellera Biologics 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 Akanda Corp with a short position of Abcellera Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Abcellera Biologics.
Diversification Opportunities for Akanda Corp and Abcellera Biologics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akanda and Abcellera is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics and Akanda Corp 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 Akanda Corp are associated (or correlated) with Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of Akanda Corp i.e., Akanda Corp and Abcellera Biologics go up and down completely randomly.
Pair Corralation between Akanda Corp and Abcellera Biologics
Given the investment horizon of 90 days Akanda Corp is expected to generate 0.98 times more return on investment than Abcellera Biologics. However, Akanda Corp is 1.02 times less risky than Abcellera Biologics. It trades about 0.17 of its potential returns per unit of risk. Abcellera Biologics is currently generating about 0.11 per unit of risk. If you would invest 150.00 in Akanda Corp on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Akanda Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Abcellera Biologics
Performance |
| Timeline |
| Akanda Corp |
| Abcellera Biologics |
Akanda Corp and Abcellera Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Abcellera Biologics
The main advantage of trading using opposite Akanda Corp and Abcellera Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Abcellera Biologics 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 Abcellera Biologics will offset losses from the drop in Abcellera Biologics' long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| Abcellera Biologics vs. Tff Pharmaceuticals | Abcellera Biologics vs. Eliem Therapeutics | Abcellera Biologics vs. Inhibrx | Abcellera Biologics 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |