Correlation Between Awakn Life and Innovent Biologics
Can any of the company-specific risk be diversified away by investing in both Awakn Life and Innovent Biologics 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 Awakn Life and Innovent Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awakn Life Sciences and Innovent Biologics, you can compare the effects of market volatilities on Awakn Life and Innovent Biologics 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 Awakn Life with a short position of Innovent Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awakn Life and Innovent Biologics.
Diversification Opportunities for Awakn Life and Innovent Biologics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Awakn and Innovent is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Awakn Life Sciences and Innovent Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovent Biologics and Awakn Life 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 Awakn Life Sciences are associated (or correlated) with Innovent Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovent Biologics has no effect on the direction of Awakn Life i.e., Awakn Life and Innovent Biologics go up and down completely randomly.
Pair Corralation between Awakn Life and Innovent Biologics
Assuming the 90 days horizon Awakn Life Sciences is expected to generate 1.69 times more return on investment than Innovent Biologics. However, Awakn Life is 1.69 times more volatile than Innovent Biologics. It trades about 0.05 of its potential returns per unit of risk. Innovent Biologics is currently generating about -0.02 per unit of risk. If you would invest 7.81 in Awakn Life Sciences on August 29, 2024 and sell it today you would earn a total of 0.19 from holding Awakn Life Sciences or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awakn Life Sciences vs. Innovent Biologics
Performance |
| Timeline |
| Awakn Life Sciences |
| Innovent Biologics |
Awakn Life and Innovent Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awakn Life and Innovent Biologics
The main advantage of trading using opposite Awakn Life and Innovent Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awakn Life position performs unexpectedly, Innovent Biologics 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 Innovent Biologics will offset losses from the drop in Innovent Biologics' long position.| Awakn Life vs. Nova Mentis Life | Awakn Life vs. PsyBio Therapeutics Corp | Awakn Life vs. HAVN Life Sciences | Awakn Life vs. Cellectis 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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