Correlation Between Akari Therapeutics and SAB Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Akari Therapeutics and SAB Biotherapeutics 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 SAB Biotherapeutics 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 SAB Biotherapeutics, you can compare the effects of market volatilities on Akari Therapeutics and SAB Biotherapeutics 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 SAB Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akari Therapeutics and SAB Biotherapeutics.
Diversification Opportunities for Akari Therapeutics and SAB Biotherapeutics
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akari and SAB is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Akari Therapeutics PLC and SAB Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAB Biotherapeutics 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 SAB Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAB Biotherapeutics has no effect on the direction of Akari Therapeutics i.e., Akari Therapeutics and SAB Biotherapeutics go up and down completely randomly.
Pair Corralation between Akari Therapeutics and SAB Biotherapeutics
Given the investment horizon of 90 days Akari Therapeutics PLC is expected to under-perform the SAB Biotherapeutics. In addition to that, Akari Therapeutics is 1.25 times more volatile than SAB Biotherapeutics. It trades about -0.26 of its total potential returns per unit of risk. SAB Biotherapeutics is currently generating about 0.05 per unit of volatility. If you would invest 292.00 in SAB Biotherapeutics on August 28, 2024 and sell it today you would earn a total of 5.00 from holding SAB Biotherapeutics or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akari Therapeutics PLC vs. SAB Biotherapeutics
Performance |
| Timeline |
| Akari Therapeutics PLC |
| SAB Biotherapeutics |
Akari Therapeutics and SAB Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akari Therapeutics and SAB Biotherapeutics
The main advantage of trading using opposite Akari Therapeutics and SAB Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akari Therapeutics position performs unexpectedly, SAB Biotherapeutics 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 SAB Biotherapeutics will offset losses from the drop in SAB Biotherapeutics' long position.| Akari Therapeutics vs. Armata Pharmaceuticals | Akari Therapeutics vs. Anebulo Pharmaceuticals | Akari Therapeutics vs. Processa Pharmaceuticals | Akari Therapeutics vs. Salarius Pharmaceuticals |
| SAB Biotherapeutics vs. Processa Pharmaceuticals | SAB Biotherapeutics vs. Third Harmonic Bio | SAB Biotherapeutics vs. Cingulate Warrants | SAB Biotherapeutics vs. Anebulo 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |