Correlation Between Akari Therapeutics and US Lithium
Can any of the company-specific risk be diversified away by investing in both Akari Therapeutics and US Lithium 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 US Lithium 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 US Lithium Corp, you can compare the effects of market volatilities on Akari Therapeutics and US Lithium 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 US Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akari Therapeutics and US Lithium.
Diversification Opportunities for Akari Therapeutics and US Lithium
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akari and LITH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Akari Therapeutics PLC and US Lithium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Lithium Corp 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 US Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Lithium Corp has no effect on the direction of Akari Therapeutics i.e., Akari Therapeutics and US Lithium go up and down completely randomly.
Pair Corralation between Akari Therapeutics and US Lithium
If you would invest 0.04 in US Lithium Corp on August 26, 2024 and sell it today you would earn a total of 0.00 from holding US Lithium Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Akari Therapeutics PLC vs. US Lithium Corp
Performance |
| Timeline |
| Akari Therapeutics PLC |
| US Lithium Corp |
Akari Therapeutics and US Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akari Therapeutics and US Lithium
The main advantage of trading using opposite Akari Therapeutics and US Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akari Therapeutics position performs unexpectedly, US Lithium 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 US Lithium will offset losses from the drop in US Lithium's long position.| Akari Therapeutics vs. Armata Pharmaceuticals | Akari Therapeutics vs. Anebulo Pharmaceuticals | Akari Therapeutics vs. Processa Pharmaceuticals | Akari Therapeutics vs. Salarius Pharmaceuticals |
| US Lithium vs. Capricor Therapeutics | US Lithium vs. Akari Therapeutics PLC | US Lithium vs. Soleno Therapeutics | US Lithium vs. Bio Path Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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