Correlation Between Evoke Pharma and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Evoke Pharma and Akanda Corp 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 Evoke Pharma and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evoke Pharma and Akanda Corp, you can compare the effects of market volatilities on Evoke Pharma and Akanda Corp 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 Evoke Pharma with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evoke Pharma and Akanda Corp.
Diversification Opportunities for Evoke Pharma and Akanda Corp
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Evoke and Akanda is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Evoke Pharma and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and Evoke Pharma 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 Evoke Pharma are associated (or correlated) with Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Evoke Pharma i.e., Evoke Pharma and Akanda Corp go up and down completely randomly.
Pair Corralation between Evoke Pharma and Akanda Corp
Given the investment horizon of 90 days Evoke Pharma is expected to under-perform the Akanda Corp. In addition to that, Evoke Pharma is 1.26 times more volatile than Akanda Corp. It trades about -0.01 of its total potential returns per unit of risk. Akanda Corp is currently generating about 0.02 per unit of volatility. If you would invest 168.00 in Akanda Corp on October 25, 2024 and sell it today you would lose (3.00) from holding Akanda Corp or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evoke Pharma vs. Akanda Corp
Performance |
| Timeline |
| Evoke Pharma |
| Akanda Corp |
Evoke Pharma and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evoke Pharma and Akanda Corp
The main advantage of trading using opposite Evoke Pharma and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evoke Pharma position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Evoke Pharma vs. Petros Pharmaceuticals | Evoke Pharma vs. Cumberland Pharmaceuticals | Evoke Pharma vs. Painreform | Evoke Pharma vs. Aquestive Therapeutics |
| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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