Correlation Between Athira Pharma and Abeona Therapeutics
Can any of the company-specific risk be diversified away by investing in both Athira Pharma and Abeona 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 Athira Pharma and Abeona Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athira Pharma and Abeona Therapeutics, you can compare the effects of market volatilities on Athira Pharma and Abeona 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 Athira Pharma with a short position of Abeona Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athira Pharma and Abeona Therapeutics.
Diversification Opportunities for Athira Pharma and Abeona Therapeutics
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Athira and Abeona is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Athira Pharma and Abeona Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abeona Therapeutics and Athira 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 Athira Pharma are associated (or correlated) with Abeona Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abeona Therapeutics has no effect on the direction of Athira Pharma i.e., Athira Pharma and Abeona Therapeutics go up and down completely randomly.
Pair Corralation between Athira Pharma and Abeona Therapeutics
Given the investment horizon of 90 days Athira Pharma is expected to generate 4.03 times more return on investment than Abeona Therapeutics. However, Athira Pharma is 4.03 times more volatile than Abeona Therapeutics. It trades about 0.12 of its potential returns per unit of risk. Abeona Therapeutics is currently generating about -0.04 per unit of risk. If you would invest 45.00 in Athira Pharma on August 29, 2024 and sell it today you would earn a total of 17.00 from holding Athira Pharma or generate 37.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athira Pharma vs. Abeona Therapeutics
Performance |
| Timeline |
| Athira Pharma |
| Abeona Therapeutics |
Athira Pharma and Abeona Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athira Pharma and Abeona Therapeutics
The main advantage of trading using opposite Athira Pharma and Abeona Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athira Pharma position performs unexpectedly, Abeona 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 Abeona Therapeutics will offset losses from the drop in Abeona Therapeutics' long position.| Athira Pharma vs. CytomX Therapeutics | Athira Pharma vs. Spero Therapeutics | Athira Pharma vs. Instil Bio | Athira Pharma vs. NextCure |
| Abeona Therapeutics vs. Valneva SE ADR | Abeona Therapeutics vs. Bright Minds Biosciences | Abeona Therapeutics vs. HP Inc | Abeona Therapeutics vs. Intel |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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