Correlation Between Akanda Corp and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Cue Biopharma 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 Cue Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Cue Biopharma, you can compare the effects of market volatilities on Akanda Corp and Cue Biopharma 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 Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Cue Biopharma.
Diversification Opportunities for Akanda Corp and Cue Biopharma
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akanda and Cue is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma 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 Cue Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Biopharma has no effect on the direction of Akanda Corp i.e., Akanda Corp and Cue Biopharma go up and down completely randomly.
Pair Corralation between Akanda Corp and Cue Biopharma
Given the investment horizon of 90 days Akanda Corp is expected to generate 0.65 times more return on investment than Cue Biopharma. However, Akanda Corp is 1.53 times less risky than Cue Biopharma. It trades about 0.21 of its potential returns per unit of risk. Cue Biopharma is currently generating about -0.13 per unit of risk. If you would invest 144.00 in Akanda Corp on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Akanda Corp or generate 21.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Cue Biopharma
Performance |
| Timeline |
| Akanda Corp |
| Cue Biopharma |
Akanda Corp and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Cue Biopharma
The main advantage of trading using opposite Akanda Corp and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Cue Biopharma 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 Cue Biopharma will offset losses from the drop in Cue Biopharma's long position.| Akanda Corp vs. Cue Biopharma | Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. Inhibrx |
| Cue Biopharma vs. Tff Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics | Cue Biopharma vs. Inhibrx | Cue Biopharma 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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