Correlation Between Forian and Akoya Biosciences
Can any of the company-specific risk be diversified away by investing in both Forian 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 Forian and Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forian Inc and Akoya Biosciences, you can compare the effects of market volatilities on Forian 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 Forian with a short position of Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forian and Akoya Biosciences.
Diversification Opportunities for Forian and Akoya Biosciences
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Forian and Akoya is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Forian Inc and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and Forian 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 Forian Inc 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 Forian i.e., Forian and Akoya Biosciences go up and down completely randomly.
Pair Corralation between Forian and Akoya Biosciences
Given the investment horizon of 90 days Forian Inc is expected to generate 0.3 times more return on investment than Akoya Biosciences. However, Forian Inc is 3.38 times less risky than Akoya Biosciences. It trades about -0.04 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.16 per unit of risk. If you would invest 207.00 in Forian Inc on August 28, 2024 and sell it today you would lose (5.00) from holding Forian Inc or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forian Inc vs. Akoya Biosciences
Performance |
| Timeline |
| Forian Inc |
| Akoya Biosciences |
Forian and Akoya Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forian and Akoya Biosciences
The main advantage of trading using opposite Forian and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forian 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.| Forian vs. HealthStream | Forian vs. National Research Corp | Forian vs. HealthEquity | Forian vs. Health Catalyst |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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