Correlation Between HCW Biologics and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both HCW Biologics 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 HCW Biologics and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCW Biologics and Akanda Corp, you can compare the effects of market volatilities on HCW Biologics 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 HCW Biologics with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCW Biologics and Akanda Corp.
Diversification Opportunities for HCW Biologics and Akanda Corp
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between HCW and Akanda is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding HCW Biologics and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and HCW Biologics 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 HCW Biologics 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 HCW Biologics i.e., HCW Biologics and Akanda Corp go up and down completely randomly.
Pair Corralation between HCW Biologics and Akanda Corp
Given the investment horizon of 90 days HCW Biologics is expected to generate 2.07 times more return on investment than Akanda Corp. However, HCW Biologics is 2.07 times more volatile than Akanda Corp. It trades about 0.02 of its potential returns per unit of risk. Akanda Corp is currently generating about -0.07 per unit of risk. If you would invest 209.00 in HCW Biologics on August 26, 2024 and sell it today you would lose (132.00) from holding HCW Biologics or give up 63.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HCW Biologics vs. Akanda Corp
Performance |
| Timeline |
| HCW Biologics |
| Akanda Corp |
HCW Biologics and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCW Biologics and Akanda Corp
The main advantage of trading using opposite HCW Biologics and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCW Biologics 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.| HCW Biologics vs. Anebulo Pharmaceuticals | HCW Biologics vs. Rezolute | HCW Biologics vs. Eliem Therapeutics | HCW Biologics vs. Molecular Partners AG |
| Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. HCW Biologics | Akanda Corp vs. Scpharmaceuticals | Akanda Corp vs. Milestone 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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