Correlation Between Akerna Corp and Immatics Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Akerna Corp and Immatics Biotechnologies 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 Immatics Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akerna Corp and immatics biotechnologies GmbH, you can compare the effects of market volatilities on Akerna Corp and Immatics Biotechnologies 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 Immatics Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akerna Corp and Immatics Biotechnologies.
Diversification Opportunities for Akerna Corp and Immatics Biotechnologies
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akerna and Immatics is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Akerna Corp and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies 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 Immatics Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of Akerna Corp i.e., Akerna Corp and Immatics Biotechnologies go up and down completely randomly.
Pair Corralation between Akerna Corp and Immatics Biotechnologies
If you would invest 297.00 in immatics biotechnologies GmbH on August 30, 2024 and sell it today you would lose (256.00) from holding immatics biotechnologies GmbH or give up 86.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.92% |
| Values | Daily Returns |
Akerna Corp vs. immatics biotechnologies GmbH
Performance |
| Timeline |
| Akerna Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Immatics Biotechnologies |
Akerna Corp and Immatics Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akerna Corp and Immatics Biotechnologies
The main advantage of trading using opposite Akerna Corp and Immatics Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akerna Corp position performs unexpectedly, Immatics Biotechnologies 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 Immatics Biotechnologies will offset losses from the drop in Immatics Biotechnologies' long position.The idea behind Akerna Corp and immatics biotechnologies GmbH 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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