Correlation Between Akanda Corp and Tandem Diabetes
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and Tandem Diabetes 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 Tandem Diabetes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Tandem Diabetes Care, you can compare the effects of market volatilities on Akanda Corp and Tandem Diabetes 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 Tandem Diabetes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Tandem Diabetes.
Diversification Opportunities for Akanda Corp and Tandem Diabetes
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Akanda and Tandem is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Tandem Diabetes Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tandem Diabetes Care 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 Tandem Diabetes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tandem Diabetes Care has no effect on the direction of Akanda Corp i.e., Akanda Corp and Tandem Diabetes go up and down completely randomly.
Pair Corralation between Akanda Corp and Tandem Diabetes
Given the investment horizon of 90 days Akanda Corp is expected to generate 1.48 times more return on investment than Tandem Diabetes. However, Akanda Corp is 1.48 times more volatile than Tandem Diabetes Care. It trades about 0.04 of its potential returns per unit of risk. Tandem Diabetes Care is currently generating about -0.05 per unit of risk. If you would invest 167.00 in Akanda Corp on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Akanda Corp or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Tandem Diabetes Care
Performance |
| Timeline |
| Akanda Corp |
| Tandem Diabetes Care |
Akanda Corp and Tandem Diabetes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Tandem Diabetes
The main advantage of trading using opposite Akanda Corp and Tandem Diabetes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, Tandem Diabetes 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 Tandem Diabetes will offset losses from the drop in Tandem Diabetes' long position.| Akanda Corp vs. Phibro Animal Health | Akanda Corp vs. Procaps Group SA | Akanda Corp vs. Amphastar P | Akanda Corp vs. Alkermes Plc |
| Tandem Diabetes vs. DexCom Inc | Tandem Diabetes vs. Inspire Medical Systems | Tandem Diabetes vs. Penumbra | Tandem Diabetes vs. Insulet |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |