Correlation Between Aldel Financial and Mink Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Mink Therapeutics 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 Aldel Financial and Mink Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Mink Therapeutics, you can compare the effects of market volatilities on Aldel Financial and Mink Therapeutics 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 Aldel Financial with a short position of Mink Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Mink Therapeutics.
Diversification Opportunities for Aldel Financial and Mink Therapeutics
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aldel and Mink is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Mink Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mink Therapeutics and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Mink Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mink Therapeutics has no effect on the direction of Aldel Financial i.e., Aldel Financial and Mink Therapeutics go up and down completely randomly.
Pair Corralation between Aldel Financial and Mink Therapeutics
Assuming the 90 days horizon Aldel Financial II is expected to generate 0.03 times more return on investment than Mink Therapeutics. However, Aldel Financial II is 36.66 times less risky than Mink Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Mink Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 999.00 in Aldel Financial II on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Aldel Financial II or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 17.47% |
| Values | Daily Returns |
Aldel Financial II vs. Mink Therapeutics
Performance |
| Timeline |
| Aldel Financial II |
| Mink Therapeutics |
Aldel Financial and Mink Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Mink Therapeutics
The main advantage of trading using opposite Aldel Financial and Mink Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Mink Therapeutics 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 Mink Therapeutics will offset losses from the drop in Mink Therapeutics' long position.| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. Voyager Acquisition Corp | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I |
| Mink Therapeutics vs. Affimed NV | Mink Therapeutics vs. Adaptimmune Therapeutics Plc | Mink Therapeutics vs. Sangamo Therapeutics | Mink Therapeutics vs. Day One Biopharmaceuticals |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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