Correlation Between Akari Therapeutics and Solitron Devices
Can any of the company-specific risk be diversified away by investing in both Akari Therapeutics and Solitron Devices 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 Solitron Devices 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 Solitron Devices, you can compare the effects of market volatilities on Akari Therapeutics and Solitron Devices 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 Solitron Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akari Therapeutics and Solitron Devices.
Diversification Opportunities for Akari Therapeutics and Solitron Devices
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Akari and Solitron is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Akari Therapeutics PLC and Solitron Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solitron Devices 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 Solitron Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solitron Devices has no effect on the direction of Akari Therapeutics i.e., Akari Therapeutics and Solitron Devices go up and down completely randomly.
Pair Corralation between Akari Therapeutics and Solitron Devices
Given the investment horizon of 90 days Akari Therapeutics PLC is expected to under-perform the Solitron Devices. In addition to that, Akari Therapeutics is 2.97 times more volatile than Solitron Devices. It trades about -0.08 of its total potential returns per unit of risk. Solitron Devices is currently generating about 0.02 per unit of volatility. If you would invest 1,556 in Solitron Devices on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Solitron Devices or generate 1.54% 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. Solitron Devices
Performance |
| Timeline |
| Akari Therapeutics PLC |
| Solitron Devices |
Akari Therapeutics and Solitron Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akari Therapeutics and Solitron Devices
The main advantage of trading using opposite Akari Therapeutics and Solitron Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akari Therapeutics position performs unexpectedly, Solitron Devices 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 Solitron Devices will offset losses from the drop in Solitron Devices' long position.| Akari Therapeutics vs. Armata Pharmaceuticals | Akari Therapeutics vs. Anebulo Pharmaceuticals | Akari Therapeutics vs. Processa Pharmaceuticals | Akari Therapeutics vs. Salarius Pharmaceuticals |
| Solitron Devices vs. Nova | Solitron Devices vs. inTest | Solitron Devices vs. Onto Innovation | Solitron Devices vs. Kulicke and Soffa |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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