Correlation Between Khiron Life and Acorda Therapeutics
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Acorda 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 Khiron Life and Acorda Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Acorda Therapeutics, you can compare the effects of market volatilities on Khiron Life and Acorda 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 Khiron Life with a short position of Acorda Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Acorda Therapeutics.
Diversification Opportunities for Khiron Life and Acorda Therapeutics
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Khiron and Acorda is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Acorda Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorda Therapeutics and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with Acorda Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorda Therapeutics has no effect on the direction of Khiron Life i.e., Khiron Life and Acorda Therapeutics go up and down completely randomly.
Pair Corralation between Khiron Life and Acorda Therapeutics
If you would invest 0.90 in Khiron Life Sciences on August 29, 2024 and sell it today you would lose (0.89) from holding Khiron Life Sciences or give up 98.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Khiron Life Sciences vs. Acorda Therapeutics
Performance |
| Timeline |
| Khiron Life Sciences |
| Acorda Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Khiron Life and Acorda Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Acorda Therapeutics
The main advantage of trading using opposite Khiron Life and Acorda Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Acorda 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 Acorda Therapeutics will offset losses from the drop in Acorda Therapeutics' long position.| Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
| Acorda Therapeutics vs. Shionogi Co | Acorda Therapeutics vs. Pacira BioSciences, | Acorda Therapeutics vs. Sunshine Biopharma Warrant | Acorda Therapeutics vs. Biofrontera |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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