Correlation Between Catalyst Biosciences and Akari Therapeutics
Can any of the company-specific risk be diversified away by investing in both Catalyst Biosciences 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 Catalyst Biosciences and Akari Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Biosciences and Akari Therapeutics PLC, you can compare the effects of market volatilities on Catalyst Biosciences 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 Catalyst Biosciences with a short position of Akari Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Biosciences and Akari Therapeutics.
Diversification Opportunities for Catalyst Biosciences and Akari Therapeutics
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and Akari is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Biosciences 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 Catalyst Biosciences 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 Catalyst Biosciences 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 Catalyst Biosciences i.e., Catalyst Biosciences and Akari Therapeutics go up and down completely randomly.
Pair Corralation between Catalyst Biosciences and Akari Therapeutics
If you would invest 121.00 in Akari Therapeutics PLC on November 2, 2024 and sell it today you would earn a total of 14.00 from holding Akari Therapeutics PLC or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Catalyst Biosciences vs. Akari Therapeutics PLC
Performance |
| Timeline |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Akari Therapeutics PLC |
Catalyst Biosciences and Akari Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Biosciences and Akari Therapeutics
The main advantage of trading using opposite Catalyst Biosciences and Akari Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Biosciences 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.| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
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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 Stocks Directory module to find actively traded stocks across global markets.
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