Correlation Between Akari Therapeutics and Histogen
Can any of the company-specific risk be diversified away by investing in both Akari Therapeutics and Histogen 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 Histogen 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 Histogen, you can compare the effects of market volatilities on Akari Therapeutics and Histogen 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 Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akari Therapeutics and Histogen.
Diversification Opportunities for Akari Therapeutics and Histogen
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Akari and Histogen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Akari Therapeutics PLC and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen 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 Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Akari Therapeutics i.e., Akari Therapeutics and Histogen go up and down completely randomly.
Pair Corralation between Akari Therapeutics and Histogen
Given the investment horizon of 90 days Akari Therapeutics PLC is expected to generate 0.52 times more return on investment than Histogen. However, Akari Therapeutics PLC is 1.92 times less risky than Histogen. It trades about -0.26 of its potential returns per unit of risk. Histogen is currently generating about -0.3 per unit of risk. If you would invest 240.00 in Akari Therapeutics PLC on August 28, 2024 and sell it today you would lose (126.00) from holding Akari Therapeutics PLC or give up 52.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akari Therapeutics PLC vs. Histogen
Performance |
| Timeline |
| Akari Therapeutics PLC |
| Histogen |
Akari Therapeutics and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akari Therapeutics and Histogen
The main advantage of trading using opposite Akari Therapeutics and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akari Therapeutics position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Akari Therapeutics vs. Armata Pharmaceuticals | Akari Therapeutics vs. Anebulo Pharmaceuticals | Akari Therapeutics vs. Processa Pharmaceuticals | Akari Therapeutics vs. Salarius Pharmaceuticals |
| Histogen vs. Eliem Therapeutics | Histogen vs. Scpharmaceuticals | Histogen vs. Milestone Pharmaceuticals | Histogen vs. Seres 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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