Correlation Between Akero Therapeutics and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both Akero Therapeutics and ImmunoGen 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 ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akero Therapeutics and ImmunoGen, you can compare the effects of market volatilities on Akero Therapeutics and ImmunoGen 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 ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akero Therapeutics and ImmunoGen.
Diversification Opportunities for Akero Therapeutics and ImmunoGen
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akero and ImmunoGen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Akero Therapeutics and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen 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 ImmunoGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoGen has no effect on the direction of Akero Therapeutics i.e., Akero Therapeutics and ImmunoGen go up and down completely randomly.
Pair Corralation between Akero Therapeutics and ImmunoGen
If you would invest 2,663 in Akero Therapeutics on August 28, 2024 and sell it today you would earn a total of 514.00 from holding Akero Therapeutics or generate 19.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Akero Therapeutics vs. ImmunoGen
Performance |
| Timeline |
| Akero Therapeutics |
| ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akero Therapeutics and ImmunoGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akero Therapeutics and ImmunoGen
The main advantage of trading using opposite Akero Therapeutics and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akero Therapeutics position performs unexpectedly, ImmunoGen 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 ImmunoGen will offset losses from the drop in ImmunoGen's long position.| Akero Therapeutics vs. Eliem Therapeutics | Akero Therapeutics vs. HCW Biologics | Akero Therapeutics vs. Scpharmaceuticals | Akero Therapeutics vs. Milestone Pharmaceuticals |
| ImmunoGen vs. Madrigal Pharmaceuticals | ImmunoGen vs. TG Therapeutics | ImmunoGen vs. Terns Pharmaceuticals | ImmunoGen vs. Hepion 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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