Correlation Between Checkpoint Therapeutics and Athira Pharma

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Checkpoint Therapeutics and Athira Pharma 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 Checkpoint Therapeutics and Athira Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Checkpoint Therapeutics and Athira Pharma, you can compare the effects of market volatilities on Checkpoint Therapeutics and Athira Pharma 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 Checkpoint Therapeutics with a short position of Athira Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Checkpoint Therapeutics and Athira Pharma.

Diversification Opportunities for Checkpoint Therapeutics and Athira Pharma

CheckpointAthiraDiversified AwayCheckpointAthiraDiversified Away100%
0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Checkpoint and Athira is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Checkpoint Therapeutics and Athira Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athira Pharma and Checkpoint Therapeutics 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 Checkpoint Therapeutics are associated (or correlated) with Athira Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athira Pharma has no effect on the direction of Checkpoint Therapeutics i.e., Checkpoint Therapeutics and Athira Pharma go up and down completely randomly.

Pair Corralation between Checkpoint Therapeutics and Athira Pharma

Given the investment horizon of 90 days Checkpoint Therapeutics is expected to generate 0.85 times more return on investment than Athira Pharma. However, Checkpoint Therapeutics is 1.17 times less risky than Athira Pharma. It trades about 0.01 of its potential returns per unit of risk. Athira Pharma is currently generating about -0.02 per unit of risk. If you would invest  517.00  in Checkpoint Therapeutics on November 26, 2024 and sell it today you would lose (222.00) from holding Checkpoint Therapeutics or give up 42.94% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Checkpoint Therapeutics  vs.  Athira Pharma

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15CKPT ATHA
       Timeline  
Checkpoint Therapeutics 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Checkpoint Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb33.544.5
Athira Pharma 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Athira Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.450.50.550.60.65

Checkpoint Therapeutics and Athira Pharma Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.21-6.15-4.09-2.03-0.03441.933.935.937.929.92 0.0140.0160.0180.0200.0220.0240.0260.028
JavaScript chart by amCharts 3.21.15CKPT ATHA
       Returns  

Pair Trading with Checkpoint Therapeutics and Athira Pharma

The main advantage of trading using opposite Checkpoint Therapeutics and Athira Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Checkpoint Therapeutics position performs unexpectedly, Athira Pharma 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 Athira Pharma will offset losses from the drop in Athira Pharma's long position.
The idea behind Checkpoint Therapeutics and Athira Pharma pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Bonds Directory
Find actively traded corporate debentures issued by US companies
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated