Correlation Between Leap Therapeutics and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Leap Therapeutics and Affimed NV 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 Leap Therapeutics and Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leap Therapeutics and Affimed NV, you can compare the effects of market volatilities on Leap Therapeutics and Affimed NV 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 Leap Therapeutics with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leap Therapeutics and Affimed NV.
Diversification Opportunities for Leap Therapeutics and Affimed NV
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Leap and Affimed is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Leap Therapeutics and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and Leap 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 Leap Therapeutics are associated (or correlated) with Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of Leap Therapeutics i.e., Leap Therapeutics and Affimed NV go up and down completely randomly.
Pair Corralation between Leap Therapeutics and Affimed NV
Given the investment horizon of 90 days Leap Therapeutics is expected to generate 1.47 times more return on investment than Affimed NV. However, Leap Therapeutics is 1.47 times more volatile than Affimed NV. It trades about -0.08 of its potential returns per unit of risk. Affimed NV is currently generating about -0.22 per unit of risk. If you would invest 306.00 in Leap Therapeutics on August 24, 2024 and sell it today you would lose (48.00) from holding Leap Therapeutics or give up 15.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leap Therapeutics vs. Affimed NV
Performance |
| Timeline |
| Leap Therapeutics |
| Affimed NV |
Leap Therapeutics and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leap Therapeutics and Affimed NV
The main advantage of trading using opposite Leap Therapeutics and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leap Therapeutics position performs unexpectedly, Affimed NV 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 Affimed NV will offset losses from the drop in Affimed NV's long position.| Leap Therapeutics vs. X4 Pharmaceuticals | Leap Therapeutics vs. Terns Pharmaceuticals | Leap Therapeutics vs. Day One Biopharmaceuticals | Leap Therapeutics vs. PDS Biotechnology Corp |
| Affimed NV vs. Lyra Therapeutics | Affimed NV vs. Hookipa Pharma | Affimed NV vs. Cingulate Warrants | Affimed NV vs. SAB Biotherapeutics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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