Correlation Between Ascendis Pharma and Akero Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and Akero 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 Ascendis Pharma and Akero Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendis Pharma AS and Akero Therapeutics, you can compare the effects of market volatilities on Ascendis Pharma and Akero 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 Ascendis Pharma with a short position of Akero Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and Akero Therapeutics.
Diversification Opportunities for Ascendis Pharma and Akero Therapeutics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ascendis and Akero is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and Akero Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akero Therapeutics and Ascendis Pharma 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 Ascendis Pharma AS are associated (or correlated) with Akero Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akero Therapeutics has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and Akero Therapeutics go up and down completely randomly.
Pair Corralation between Ascendis Pharma and Akero Therapeutics
Given the investment horizon of 90 days Ascendis Pharma is expected to generate 5.23 times less return on investment than Akero Therapeutics. But when comparing it to its historical volatility, Ascendis Pharma AS is 1.78 times less risky than Akero Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Akero Therapeutics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,971 in Akero Therapeutics on August 28, 2024 and sell it today you would earn a total of 206.00 from holding Akero Therapeutics or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Pharma AS vs. Akero Therapeutics
Performance |
| Timeline |
| Ascendis Pharma AS |
| Akero Therapeutics |
Ascendis Pharma and Akero Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and Akero Therapeutics
The main advantage of trading using opposite Ascendis Pharma and Akero Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, Akero 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 Akero Therapeutics will offset losses from the drop in Akero Therapeutics' long position.| Ascendis Pharma vs. Eliem Therapeutics | Ascendis Pharma vs. HCW Biologics | Ascendis Pharma vs. Scpharmaceuticals | Ascendis Pharma vs. Milestone Pharmaceuticals |
| Akero Therapeutics vs. Eliem Therapeutics | Akero Therapeutics vs. HCW Biologics | Akero Therapeutics vs. Scpharmaceuticals | Akero Therapeutics vs. Milestone 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |