Correlation Between Akanda Corp and Emergent Biosolutions
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Emergent Biosolutions 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 Emergent Biosolutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Emergent Biosolutions, you can compare the effects of market volatilities on Akanda Corp and Emergent Biosolutions 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 Emergent Biosolutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Emergent Biosolutions.
Diversification Opportunities for Akanda Corp and Emergent Biosolutions
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Akanda and Emergent is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Emergent Biosolutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emergent Biosolutions 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 Emergent Biosolutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emergent Biosolutions has no effect on the direction of Akanda Corp i.e., Akanda Corp and Emergent Biosolutions go up and down completely randomly.
Pair Corralation between Akanda Corp and Emergent Biosolutions
Given the investment horizon of 90 days Akanda Corp is expected to generate 1.1 times less return on investment than Emergent Biosolutions. In addition to that, Akanda Corp is 1.58 times more volatile than Emergent Biosolutions. It trades about 0.08 of its total potential returns per unit of risk. Emergent Biosolutions is currently generating about 0.14 per unit of volatility. If you would invest 827.00 in Emergent Biosolutions on October 20, 2024 and sell it today you would earn a total of 161.00 from holding Emergent Biosolutions or generate 19.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Emergent Biosolutions
Performance |
| Timeline |
| Akanda Corp |
| Emergent Biosolutions |
Akanda Corp and Emergent Biosolutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Emergent Biosolutions
The main advantage of trading using opposite Akanda Corp and Emergent Biosolutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Emergent Biosolutions 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 Emergent Biosolutions will offset losses from the drop in Emergent Biosolutions' long position.| Akanda Corp vs. Agilent Technologies | Akanda Corp vs. Equillium | Akanda Corp vs. 23Andme Holding Co | Akanda Corp vs. DiaMedica Therapeutics |
| Emergent Biosolutions vs. Zoetis Inc | Emergent Biosolutions vs. Bausch Health Companies | Emergent Biosolutions vs. Neurocrine Biosciences | Emergent Biosolutions vs. Akanda Corp |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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