Correlation Between Amphastar and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Amphastar and Akanda Corp 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 Amphastar and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphastar P and Akanda Corp, you can compare the effects of market volatilities on Amphastar and Akanda Corp 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 Amphastar with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphastar and Akanda Corp.
Diversification Opportunities for Amphastar and Akanda Corp
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amphastar and Akanda is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and Amphastar 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 Amphastar P are associated (or correlated) with Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Amphastar i.e., Amphastar and Akanda Corp go up and down completely randomly.
Pair Corralation between Amphastar and Akanda Corp
Given the investment horizon of 90 days Amphastar P is expected to under-perform the Akanda Corp. But the stock apears to be less risky and, when comparing its historical volatility, Amphastar P is 2.64 times less risky than Akanda Corp. The stock trades about -0.41 of its potential returns per unit of risk. The Akanda Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 165.00 in Akanda Corp on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Akanda Corp or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphastar P vs. Akanda Corp
Performance |
| Timeline |
| Amphastar P |
| Akanda Corp |
Amphastar and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphastar and Akanda Corp
The main advantage of trading using opposite Amphastar and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Amphastar vs. Collegium Pharmaceutical | Amphastar vs. Alkermes Plc | Amphastar vs. Evolus Inc | Amphastar vs. Neurocrine Biosciences |
| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |