Correlation Between Fortress Biotech and Athira Pharma
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech 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 Fortress Biotech and Athira Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech and Athira Pharma, you can compare the effects of market volatilities on Fortress Biotech 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 Fortress Biotech with a short position of Athira Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Athira Pharma.
Diversification Opportunities for Fortress Biotech and Athira Pharma
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortress and Athira is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and Athira Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athira Pharma and Fortress Biotech 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 Fortress Biotech 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 Fortress Biotech i.e., Fortress Biotech and Athira Pharma go up and down completely randomly.
Pair Corralation between Fortress Biotech and Athira Pharma
Given the investment horizon of 90 days Fortress Biotech is expected to generate 0.93 times more return on investment than Athira Pharma. However, Fortress Biotech is 1.07 times less risky than Athira Pharma. It trades about 0.0 of its potential returns per unit of risk. Athira Pharma is currently generating about -0.01 per unit of risk. If you would invest 190.00 in Fortress Biotech on November 1, 2024 and sell it today you would lose (12.00) from holding Fortress Biotech or give up 6.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortress Biotech vs. Athira Pharma
Performance |
| Timeline |
| Fortress Biotech |
| Athira Pharma |
Fortress Biotech and Athira Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Athira Pharma
The main advantage of trading using opposite Fortress Biotech and Athira Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech 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.| Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Achilles Therapeutics PLC | Fortress Biotech vs. Aptose Biosciences | Fortress Biotech vs. Fortress Biotech Pref |
| Athira Pharma vs. CytomX Therapeutics | Athira Pharma vs. Spero Therapeutics | Athira Pharma vs. Instil Bio | Athira Pharma vs. NextCure |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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