Correlation Between Athenex and Alpha Teknova
Can any of the company-specific risk be diversified away by investing in both Athenex and Alpha Teknova 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 Athenex and Alpha Teknova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athenex and Alpha Teknova, you can compare the effects of market volatilities on Athenex and Alpha Teknova 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 Athenex with a short position of Alpha Teknova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athenex and Alpha Teknova.
Diversification Opportunities for Athenex and Alpha Teknova
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Athenex and Alpha is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Athenex and Alpha Teknova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Teknova and Athenex 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 Athenex are associated (or correlated) with Alpha Teknova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Teknova has no effect on the direction of Athenex i.e., Athenex and Alpha Teknova go up and down completely randomly.
Pair Corralation between Athenex and Alpha Teknova
If you would invest 665.00 in Alpha Teknova on August 25, 2024 and sell it today you would earn a total of 68.00 from holding Alpha Teknova or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Athenex vs. Alpha Teknova
Performance |
| Timeline |
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alpha Teknova |
Athenex and Alpha Teknova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athenex and Alpha Teknova
The main advantage of trading using opposite Athenex and Alpha Teknova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athenex position performs unexpectedly, Alpha Teknova 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 Alpha Teknova will offset losses from the drop in Alpha Teknova's long position.The idea behind Athenex and Alpha Teknova pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Alpha Teknova vs. Collegium Pharmaceutical | Alpha Teknova vs. Phibro Animal Health | Alpha Teknova vs. ANI Pharmaceuticals | Alpha Teknova vs. Procaps Group SA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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