Correlation Between Akerna Corp and BioCardia
Can any of the company-specific risk be diversified away by investing in both Akerna Corp and BioCardia 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 Akerna Corp and BioCardia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akerna Corp and BioCardia, you can compare the effects of market volatilities on Akerna Corp and BioCardia 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 Akerna Corp with a short position of BioCardia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akerna Corp and BioCardia.
Diversification Opportunities for Akerna Corp and BioCardia
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akerna and BioCardia is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Akerna Corp and BioCardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioCardia and Akerna Corp 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 Akerna Corp are associated (or correlated) with BioCardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioCardia has no effect on the direction of Akerna Corp i.e., Akerna Corp and BioCardia go up and down completely randomly.
Pair Corralation between Akerna Corp and BioCardia
If you would invest 3.80 in Akerna Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Akerna Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 3.03% |
| Values | Daily Returns |
Akerna Corp vs. BioCardia
Performance |
| Timeline |
| Akerna Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BioCardia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akerna Corp and BioCardia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akerna Corp and BioCardia
The main advantage of trading using opposite Akerna Corp and BioCardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akerna Corp position performs unexpectedly, BioCardia 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 BioCardia will offset losses from the drop in BioCardia's long position.The idea behind Akerna Corp and BioCardia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |