Correlation Between Akebia Ther and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Akebia Ther and Affimed NV 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 Akebia Ther and Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akebia Ther and Affimed NV, you can compare the effects of market volatilities on Akebia Ther and Affimed NV 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 Akebia Ther with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akebia Ther and Affimed NV.
Diversification Opportunities for Akebia Ther and Affimed NV
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akebia and Affimed is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Akebia Ther and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and Akebia Ther 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 Akebia Ther are associated (or correlated) with Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of Akebia Ther i.e., Akebia Ther and Affimed NV go up and down completely randomly.
Pair Corralation between Akebia Ther and Affimed NV
Given the investment horizon of 90 days Akebia Ther is expected to generate 0.94 times more return on investment than Affimed NV. However, Akebia Ther is 1.07 times less risky than Affimed NV. It trades about 0.07 of its potential returns per unit of risk. Affimed NV is currently generating about -0.05 per unit of risk. If you would invest 80.00 in Akebia Ther on November 1, 2024 and sell it today you would earn a total of 150.00 from holding Akebia Ther or generate 187.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Akebia Ther vs. Affimed NV
Performance |
| Timeline |
| Akebia Ther |
| Affimed NV |
Akebia Ther and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akebia Ther and Affimed NV
The main advantage of trading using opposite Akebia Ther and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akebia Ther position performs unexpectedly, Affimed NV 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 Affimed NV will offset losses from the drop in Affimed NV's long position.| Akebia Ther vs. Protalix Biotherapeutics | Akebia Ther vs. Cidara Therapeutics | Akebia Ther vs. X4 Pharmaceuticals | Akebia Ther vs. Seres Therapeutics |
| Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals | Affimed NV vs. Terns Pharmaceuticals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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