Correlation Between Akanda Corp and Neogen
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Neogen 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 Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Neogen, you can compare the effects of market volatilities on Akanda Corp and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Neogen.
Diversification Opportunities for Akanda Corp and Neogen
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akanda and Neogen is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Akanda Corp i.e., Akanda Corp and Neogen go up and down completely randomly.
Pair Corralation between Akanda Corp and Neogen
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the Neogen. In addition to that, Akanda Corp is 3.29 times more volatile than Neogen. It trades about -0.06 of its total potential returns per unit of risk. Neogen is currently generating about -0.03 per unit of volatility. If you would invest 1,769 in Neogen on November 19, 2024 and sell it today you would lose (786.00) from holding Neogen or give up 44.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Neogen
Performance |
| Timeline |
| Akanda Corp |
| Neogen |
Akanda Corp and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Neogen
The main advantage of trading using opposite Akanda Corp and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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