Correlation Between HLS Therapeutics and Avicanna
Can any of the company-specific risk be diversified away by investing in both HLS Therapeutics and Avicanna 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 HLS Therapeutics and Avicanna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HLS Therapeutics and Avicanna, you can compare the effects of market volatilities on HLS Therapeutics and Avicanna 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 HLS Therapeutics with a short position of Avicanna. Check out your portfolio center. Please also check ongoing floating volatility patterns of HLS Therapeutics and Avicanna.
Diversification Opportunities for HLS Therapeutics and Avicanna
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between HLS and Avicanna is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding HLS Therapeutics and Avicanna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avicanna and HLS 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 HLS Therapeutics are associated (or correlated) with Avicanna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avicanna has no effect on the direction of HLS Therapeutics i.e., HLS Therapeutics and Avicanna go up and down completely randomly.
Pair Corralation between HLS Therapeutics and Avicanna
Assuming the 90 days horizon HLS Therapeutics is expected to under-perform the Avicanna. But the pink sheet apears to be less risky and, when comparing its historical volatility, HLS Therapeutics is 1.82 times less risky than Avicanna. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Avicanna is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Avicanna on November 2, 2024 and sell it today you would lose (14.00) from holding Avicanna or give up 43.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
HLS Therapeutics vs. Avicanna
Performance |
| Timeline |
| HLS Therapeutics |
| Avicanna |
HLS Therapeutics and Avicanna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HLS Therapeutics and Avicanna
The main advantage of trading using opposite HLS Therapeutics and Avicanna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HLS Therapeutics position performs unexpectedly, Avicanna 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 Avicanna will offset losses from the drop in Avicanna's long position.| HLS Therapeutics vs. Aion Therapeutic | HLS Therapeutics vs. Cannara Biotech | HLS Therapeutics vs. Knight Therapeutics | HLS Therapeutics vs. Canntab Therapeutics Limited |
| Avicanna vs. Pharmacielo | Avicanna vs. Khiron Life Sciences | Avicanna vs. Flower One Holdings | Avicanna vs. Cansortium |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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