Correlation Between Akari Therapeutics and Vaccinex
Can any of the company-specific risk be diversified away by investing in both Akari Therapeutics and Vaccinex 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 Vaccinex 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 Vaccinex, you can compare the effects of market volatilities on Akari Therapeutics and Vaccinex 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 Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akari Therapeutics and Vaccinex.
Diversification Opportunities for Akari Therapeutics and Vaccinex
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akari and Vaccinex is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Akari Therapeutics PLC and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex 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 Vaccinex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaccinex has no effect on the direction of Akari Therapeutics i.e., Akari Therapeutics and Vaccinex go up and down completely randomly.
Pair Corralation between Akari Therapeutics and Vaccinex
Given the investment horizon of 90 days Akari Therapeutics is expected to generate 1.46 times less return on investment than Vaccinex. But when comparing it to its historical volatility, Akari Therapeutics PLC is 1.59 times less risky than Vaccinex. It trades about 0.16 of its potential returns per unit of risk. Vaccinex is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Vaccinex on October 20, 2024 and sell it today you would earn a total of 8.00 from holding Vaccinex or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 35.0% |
| Values | Daily Returns |
Akari Therapeutics PLC vs. Vaccinex
Performance |
| Timeline |
| Akari Therapeutics PLC |
| Vaccinex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akari Therapeutics and Vaccinex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akari Therapeutics and Vaccinex
The main advantage of trading using opposite Akari Therapeutics and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akari Therapeutics position performs unexpectedly, Vaccinex 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 Vaccinex will offset losses from the drop in Vaccinex's long position.| Akari Therapeutics vs. Armata Pharmaceuticals | Akari Therapeutics vs. Anebulo Pharmaceuticals | Akari Therapeutics vs. Processa Pharmaceuticals | Akari Therapeutics vs. Salarius Pharmaceuticals |
| Vaccinex vs. Protara Therapeutics | Vaccinex vs. Monopar Therapeutics | Vaccinex vs. Surrozen | Vaccinex vs. Salarius 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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