Correlation Between Akoya Biosciences and ATRION
Can any of the company-specific risk be diversified away by investing in both Akoya Biosciences and ATRION 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 Akoya Biosciences and ATRION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akoya Biosciences and ATRION, you can compare the effects of market volatilities on Akoya Biosciences and ATRION 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 Akoya Biosciences with a short position of ATRION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akoya Biosciences and ATRION.
Diversification Opportunities for Akoya Biosciences and ATRION
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Akoya and ATRION is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Akoya Biosciences and ATRION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRION and Akoya Biosciences 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 Akoya Biosciences are associated (or correlated) with ATRION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRION has no effect on the direction of Akoya Biosciences i.e., Akoya Biosciences and ATRION go up and down completely randomly.
Pair Corralation between Akoya Biosciences and ATRION
Given the investment horizon of 90 days Akoya Biosciences is expected to generate 0.4 times more return on investment than ATRION. However, Akoya Biosciences is 2.52 times less risky than ATRION. It trades about 0.01 of its potential returns per unit of risk. ATRION is currently generating about -0.13 per unit of risk. If you would invest 230.00 in Akoya Biosciences on August 24, 2024 and sell it today you would lose (18.00) from holding Akoya Biosciences or give up 7.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 48.0% |
| Values | Daily Returns |
Akoya Biosciences vs. ATRION
Performance |
| Timeline |
| Akoya Biosciences |
| ATRION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akoya Biosciences and ATRION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akoya Biosciences and ATRION
The main advantage of trading using opposite Akoya Biosciences and ATRION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akoya Biosciences position performs unexpectedly, ATRION 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 ATRION will offset losses from the drop in ATRION's long position.| Akoya Biosciences vs. AtriCure | Akoya Biosciences vs. ICU Medical | Akoya Biosciences vs. Haemonetics | Akoya Biosciences vs. AngioDynamics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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