Correlation Between Histogen and Akari Therapeutics
Can any of the company-specific risk be diversified away by investing in both Histogen and Akari Therapeutics 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 Histogen and Akari Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and Akari Therapeutics PLC, you can compare the effects of market volatilities on Histogen and Akari Therapeutics 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 Histogen with a short position of Akari Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and Akari Therapeutics.
Diversification Opportunities for Histogen and Akari Therapeutics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Histogen and Akari is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Histogen and Akari Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akari Therapeutics PLC and Histogen 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 Histogen are associated (or correlated) with Akari Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akari Therapeutics PLC has no effect on the direction of Histogen i.e., Histogen and Akari Therapeutics go up and down completely randomly.
Pair Corralation between Histogen and Akari Therapeutics
Given the investment horizon of 90 days Histogen is expected to generate 2.38 times more return on investment than Akari Therapeutics. However, Histogen is 2.38 times more volatile than Akari Therapeutics PLC. It trades about 0.02 of its potential returns per unit of risk. Akari Therapeutics PLC is currently generating about -0.03 per unit of risk. If you would invest 50.00 in Histogen on August 25, 2024 and sell it today you would lose (47.31) from holding Histogen or give up 94.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Histogen vs. Akari Therapeutics PLC
Performance |
| Timeline |
| Histogen |
| Akari Therapeutics PLC |
Histogen and Akari Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histogen and Akari Therapeutics
The main advantage of trading using opposite Histogen and Akari Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen position performs unexpectedly, Akari Therapeutics 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 Akari Therapeutics will offset losses from the drop in Akari Therapeutics' long position.| Histogen vs. Virax Biolabs Group | Histogen vs. Altamira Therapeutics | Histogen vs. Aileron Therapeutics | Histogen vs. Artelo Biosciences |
| Akari Therapeutics vs. Lyra Therapeutics | Akari Therapeutics vs. Hookipa Pharma | Akari Therapeutics vs. SAB Biotherapeutics | Akari Therapeutics vs. Cadrenal Therapeutics, Common |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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