Correlation Between Akanda Corp and MACOM Technology
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and MACOM Technology 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 MACOM Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and MACOM Technology Solutions, you can compare the effects of market volatilities on Akanda Corp and MACOM Technology 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 MACOM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and MACOM Technology.
Diversification Opportunities for Akanda Corp and MACOM Technology
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akanda and MACOM is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and MACOM Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MACOM Technology Sol 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 MACOM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MACOM Technology Sol has no effect on the direction of Akanda Corp i.e., Akanda Corp and MACOM Technology go up and down completely randomly.
Pair Corralation between Akanda Corp and MACOM Technology
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the MACOM Technology. In addition to that, Akanda Corp is 1.88 times more volatile than MACOM Technology Solutions. It trades about -0.14 of its total potential returns per unit of risk. MACOM Technology Solutions is currently generating about 0.09 per unit of volatility. If you would invest 10,193 in MACOM Technology Solutions on September 1, 2024 and sell it today you would earn a total of 3,089 from holding MACOM Technology Solutions or generate 30.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. MACOM Technology Solutions
Performance |
| Timeline |
| Akanda Corp |
| MACOM Technology Sol |
Akanda Corp and MACOM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and MACOM Technology
The main advantage of trading using opposite Akanda Corp and MACOM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, MACOM Technology 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 MACOM Technology will offset losses from the drop in MACOM Technology's long position.| Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. Inhibrx | Akanda Corp vs. Enliven Therapeutics |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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