Correlation Between AstraZeneca PLC and Athanase Innovation
Can any of the company-specific risk be diversified away by investing in both AstraZeneca PLC and Athanase Innovation 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 AstraZeneca PLC and Athanase Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstraZeneca PLC and Athanase Innovation AB, you can compare the effects of market volatilities on AstraZeneca PLC and Athanase Innovation 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 AstraZeneca PLC with a short position of Athanase Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstraZeneca PLC and Athanase Innovation.
Diversification Opportunities for AstraZeneca PLC and Athanase Innovation
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AstraZeneca and Athanase is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AstraZeneca PLC and Athanase Innovation AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athanase Innovation and AstraZeneca PLC 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 AstraZeneca PLC are associated (or correlated) with Athanase Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athanase Innovation has no effect on the direction of AstraZeneca PLC i.e., AstraZeneca PLC and Athanase Innovation go up and down completely randomly.
Pair Corralation between AstraZeneca PLC and Athanase Innovation
Assuming the 90 days trading horizon AstraZeneca PLC is expected to generate 0.9 times more return on investment than Athanase Innovation. However, AstraZeneca PLC is 1.12 times less risky than Athanase Innovation. It trades about -0.07 of its potential returns per unit of risk. Athanase Innovation AB is currently generating about -0.26 per unit of risk. If you would invest 152,600 in AstraZeneca PLC on September 2, 2024 and sell it today you would lose (5,500) from holding AstraZeneca PLC or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AstraZeneca PLC vs. Athanase Innovation AB
Performance |
| Timeline |
| AstraZeneca PLC |
| Athanase Innovation |
AstraZeneca PLC and Athanase Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstraZeneca PLC and Athanase Innovation
The main advantage of trading using opposite AstraZeneca PLC and Athanase Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstraZeneca PLC position performs unexpectedly, Athanase Innovation 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 Athanase Innovation will offset losses from the drop in Athanase Innovation's long position.| AstraZeneca PLC vs. BioInvent International AB | AstraZeneca PLC vs. Hansa Biopharma AB | AstraZeneca PLC vs. ExpreS2ion Biotech Holding | AstraZeneca PLC vs. Saniona AB |
| Athanase Innovation vs. AstraZeneca PLC | Athanase Innovation vs. Investor AB ser | Athanase Innovation vs. Investor AB ser | Athanase Innovation vs. Atlas Copco AB |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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