Correlation Between Akari Therapeutics and ABVC Biopharma
Can any of the company-specific risk be diversified away by investing in both Akari Therapeutics and ABVC Biopharma 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 Akari Therapeutics and ABVC Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akari Therapeutics PLC and ABVC Biopharma, you can compare the effects of market volatilities on Akari Therapeutics and ABVC Biopharma 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 Akari Therapeutics with a short position of ABVC Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akari Therapeutics and ABVC Biopharma.
Diversification Opportunities for Akari Therapeutics and ABVC Biopharma
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akari and ABVC is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Akari Therapeutics PLC and ABVC Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABVC Biopharma and Akari 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 Akari Therapeutics PLC are associated (or correlated) with ABVC Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABVC Biopharma has no effect on the direction of Akari Therapeutics i.e., Akari Therapeutics and ABVC Biopharma go up and down completely randomly.
Pair Corralation between Akari Therapeutics and ABVC Biopharma
Given the investment horizon of 90 days Akari Therapeutics PLC is expected to generate 0.72 times more return on investment than ABVC Biopharma. However, Akari Therapeutics PLC is 1.39 times less risky than ABVC Biopharma. It trades about -0.01 of its potential returns per unit of risk. ABVC Biopharma is currently generating about -0.04 per unit of risk. If you would invest 355.00 in Akari Therapeutics PLC on August 26, 2024 and sell it today you would lose (225.00) from holding Akari Therapeutics PLC or give up 63.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Akari Therapeutics PLC vs. ABVC Biopharma
Performance |
| Timeline |
| Akari Therapeutics PLC |
| ABVC Biopharma |
Akari Therapeutics and ABVC Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akari Therapeutics and ABVC Biopharma
The main advantage of trading using opposite Akari Therapeutics and ABVC Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akari Therapeutics position performs unexpectedly, ABVC Biopharma 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 ABVC Biopharma will offset losses from the drop in ABVC Biopharma's long position.| Akari Therapeutics vs. Armata Pharmaceuticals | Akari Therapeutics vs. Anebulo Pharmaceuticals | Akari Therapeutics vs. Processa Pharmaceuticals | Akari Therapeutics vs. Salarius Pharmaceuticals |
| ABVC Biopharma vs. Indaptus Therapeutics | ABVC Biopharma vs. Pasithea Therapeutics Corp | ABVC Biopharma vs. Forte Biosciences | ABVC Biopharma vs. Aileron Therapeutics |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |