Correlation Between BioLife Solutions and Akoya Biosciences
Can any of the company-specific risk be diversified away by investing in both BioLife Solutions and Akoya Biosciences 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 BioLife Solutions and Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLife Solutions and Akoya Biosciences, you can compare the effects of market volatilities on BioLife Solutions and Akoya Biosciences 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 BioLife Solutions with a short position of Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLife Solutions and Akoya Biosciences.
Diversification Opportunities for BioLife Solutions and Akoya Biosciences
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BioLife and Akoya is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Solutions and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and BioLife Solutions 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 BioLife Solutions are associated (or correlated) with Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of BioLife Solutions i.e., BioLife Solutions and Akoya Biosciences go up and down completely randomly.
Pair Corralation between BioLife Solutions and Akoya Biosciences
Given the investment horizon of 90 days BioLife Solutions is expected to generate 1.12 times less return on investment than Akoya Biosciences. But when comparing it to its historical volatility, BioLife Solutions is 1.67 times less risky than Akoya Biosciences. It trades about 0.08 of its potential returns per unit of risk. Akoya Biosciences is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Akoya Biosciences on November 1, 2024 and sell it today you would earn a total of 26.00 from holding Akoya Biosciences or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLife Solutions vs. Akoya Biosciences
Performance |
| Timeline |
| BioLife Solutions |
| Akoya Biosciences |
BioLife Solutions and Akoya Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLife Solutions and Akoya Biosciences
The main advantage of trading using opposite BioLife Solutions and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLife Solutions position performs unexpectedly, Akoya Biosciences 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 Akoya Biosciences will offset losses from the drop in Akoya Biosciences' long position.| BioLife Solutions vs. Akoya Biosciences | BioLife Solutions vs. AtriCure | BioLife Solutions vs. ICU Medical | BioLife Solutions vs. Haemonetics |
| Akoya Biosciences vs. AtriCure | Akoya Biosciences vs. ICU Medical | Akoya Biosciences vs. Haemonetics | Akoya Biosciences vs. AngioDynamics |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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