Correlation Between Akeso, and BioCardia
Can any of the company-specific risk be diversified away by investing in both Akeso, and BioCardia 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 Akeso, and BioCardia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akeso, Inc and BioCardia, you can compare the effects of market volatilities on Akeso, and BioCardia 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 Akeso, with a short position of BioCardia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akeso, and BioCardia.
Diversification Opportunities for Akeso, and BioCardia
Very good diversification
The 3 months correlation between Akeso, and BioCardia is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Akeso, Inc and BioCardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioCardia and Akeso, 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 Akeso, Inc are associated (or correlated) with BioCardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioCardia has no effect on the direction of Akeso, i.e., Akeso, and BioCardia go up and down completely randomly.
Pair Corralation between Akeso, and BioCardia
Assuming the 90 days horizon Akeso, is expected to generate 30.79 times less return on investment than BioCardia. But when comparing it to its historical volatility, Akeso, Inc is 20.28 times less risky than BioCardia. It trades about 0.05 of its potential returns per unit of risk. BioCardia is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 80.00 in BioCardia on August 29, 2024 and sell it today you would lose (80.00) from holding BioCardia or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.15% |
| Values | Daily Returns |
Akeso, Inc vs. BioCardia
Performance |
| Timeline |
| Akeso, Inc |
| BioCardia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akeso, and BioCardia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akeso, and BioCardia
The main advantage of trading using opposite Akeso, and BioCardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akeso, position performs unexpectedly, BioCardia 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 BioCardia will offset losses from the drop in BioCardia's long position.The idea behind Akeso, Inc and BioCardia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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