Correlation Between Akero Therapeutics and Anixa Biosciences
Can any of the company-specific risk be diversified away by investing in both Akero Therapeutics and Anixa Biosciences 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 Akero Therapeutics and Anixa Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akero Therapeutics and Anixa Biosciences, you can compare the effects of market volatilities on Akero Therapeutics and Anixa Biosciences 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 Akero Therapeutics with a short position of Anixa Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akero Therapeutics and Anixa Biosciences.
Diversification Opportunities for Akero Therapeutics and Anixa Biosciences
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Akero and Anixa is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Akero Therapeutics and Anixa Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anixa Biosciences and Akero Therapeutics 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 Akero Therapeutics are associated (or correlated) with Anixa Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anixa Biosciences has no effect on the direction of Akero Therapeutics i.e., Akero Therapeutics and Anixa Biosciences go up and down completely randomly.
Pair Corralation between Akero Therapeutics and Anixa Biosciences
Given the investment horizon of 90 days Akero Therapeutics is expected to generate 0.76 times more return on investment than Anixa Biosciences. However, Akero Therapeutics is 1.31 times less risky than Anixa Biosciences. It trades about 0.02 of its potential returns per unit of risk. Anixa Biosciences is currently generating about 0.01 per unit of risk. If you would invest 3,052 in Akero Therapeutics on September 1, 2024 and sell it today you would earn a total of 158.00 from holding Akero Therapeutics or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akero Therapeutics vs. Anixa Biosciences
Performance |
| Timeline |
| Akero Therapeutics |
| Anixa Biosciences |
Akero Therapeutics and Anixa Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akero Therapeutics and Anixa Biosciences
The main advantage of trading using opposite Akero Therapeutics and Anixa Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akero Therapeutics position performs unexpectedly, Anixa Biosciences 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 Anixa Biosciences will offset losses from the drop in Anixa Biosciences' long position.| Akero Therapeutics vs. Tff Pharmaceuticals | Akero Therapeutics vs. Eliem Therapeutics | Akero Therapeutics vs. Inhibrx | Akero Therapeutics vs. Enliven Therapeutics |
| Anixa Biosciences vs. Cue Biopharma | Anixa Biosciences vs. INmune Bio | Anixa Biosciences vs. In8bio Inc | Anixa Biosciences vs. PolyPid |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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