Correlation Between Axcella Health and Akari Therapeutics
Can any of the company-specific risk be diversified away by investing in both Axcella Health and Akari 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 Axcella Health and Akari Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcella Health and Akari Therapeutics PLC, you can compare the effects of market volatilities on Axcella Health and Akari 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 Axcella Health with a short position of Akari Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcella Health and Akari Therapeutics.
Diversification Opportunities for Axcella Health and Akari Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axcella and Akari is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Axcella Health and Akari Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akari Therapeutics PLC and Axcella Health 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 Axcella Health are associated (or correlated) with Akari Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akari Therapeutics PLC has no effect on the direction of Axcella Health i.e., Axcella Health and Akari Therapeutics go up and down completely randomly.
Pair Corralation between Axcella Health and Akari Therapeutics
If you would invest 20.00 in Axcella Health on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Axcella Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.35% |
| Values | Daily Returns |
Axcella Health vs. Akari Therapeutics PLC
Performance |
| Timeline |
| Axcella Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Akari Therapeutics PLC |
Axcella Health and Akari Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcella Health and Akari Therapeutics
The main advantage of trading using opposite Axcella Health and Akari Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcella Health position performs unexpectedly, Akari 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 Akari Therapeutics will offset losses from the drop in Akari Therapeutics' long position.| Axcella Health vs. Cyclerion Therapeutics | Axcella Health vs. Kezar Life Sciences | Axcella Health vs. CytomX Therapeutics | Axcella Health vs. Assembly Biosciences |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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