Correlation Between Axim Biotechnologies and Awakn Life
Can any of the company-specific risk be diversified away by investing in both Axim Biotechnologies and Awakn Life 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 Axim Biotechnologies and Awakn Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axim Biotechnologies and Awakn Life Sciences, you can compare the effects of market volatilities on Axim Biotechnologies and Awakn Life 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 Axim Biotechnologies with a short position of Awakn Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axim Biotechnologies and Awakn Life.
Diversification Opportunities for Axim Biotechnologies and Awakn Life
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Axim and Awakn is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Axim Biotechnologies and Awakn Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awakn Life Sciences and Axim Biotechnologies 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 Axim Biotechnologies are associated (or correlated) with Awakn Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awakn Life Sciences has no effect on the direction of Axim Biotechnologies i.e., Axim Biotechnologies and Awakn Life go up and down completely randomly.
Pair Corralation between Axim Biotechnologies and Awakn Life
Given the investment horizon of 90 days Axim Biotechnologies is expected to generate 3.86 times less return on investment than Awakn Life. In addition to that, Axim Biotechnologies is 1.41 times more volatile than Awakn Life Sciences. It trades about 0.01 of its total potential returns per unit of risk. Awakn Life Sciences is currently generating about 0.05 per unit of volatility. If you would invest 10.00 in Awakn Life Sciences on September 2, 2024 and sell it today you would lose (1.50) from holding Awakn Life Sciences or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axim Biotechnologies vs. Awakn Life Sciences
Performance |
| Timeline |
| Axim Biotechnologies |
| Awakn Life Sciences |
Axim Biotechnologies and Awakn Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axim Biotechnologies and Awakn Life
The main advantage of trading using opposite Axim Biotechnologies and Awakn Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axim Biotechnologies position performs unexpectedly, Awakn Life 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 Awakn Life will offset losses from the drop in Awakn Life's long position.| Axim Biotechnologies vs. Brainsway | Axim Biotechnologies vs. Venus Concept | Axim Biotechnologies vs. Tactile Systems Technology | Axim Biotechnologies vs. Icecure Medical |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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