Correlation Between NewAmsterdam Pharma and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both NewAmsterdam Pharma and Akanda Corp 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 NewAmsterdam Pharma and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewAmsterdam Pharma and Akanda Corp, you can compare the effects of market volatilities on NewAmsterdam Pharma and Akanda Corp 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 NewAmsterdam Pharma with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewAmsterdam Pharma and Akanda Corp.
Diversification Opportunities for NewAmsterdam Pharma and Akanda Corp
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NewAmsterdam and Akanda is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding NewAmsterdam Pharma and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and NewAmsterdam Pharma 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 NewAmsterdam Pharma are associated (or correlated) with Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of NewAmsterdam Pharma i.e., NewAmsterdam Pharma and Akanda Corp go up and down completely randomly.
Pair Corralation between NewAmsterdam Pharma and Akanda Corp
Given the investment horizon of 90 days NewAmsterdam Pharma is expected to generate 1.31 times less return on investment than Akanda Corp. In addition to that, NewAmsterdam Pharma is 1.06 times more volatile than Akanda Corp. It trades about 0.12 of its total potential returns per unit of risk. Akanda Corp is currently generating about 0.17 per unit of volatility. If you would invest 150.00 in Akanda Corp on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Akanda Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewAmsterdam Pharma vs. Akanda Corp
Performance |
| Timeline |
| NewAmsterdam Pharma |
| Akanda Corp |
NewAmsterdam Pharma and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewAmsterdam Pharma and Akanda Corp
The main advantage of trading using opposite NewAmsterdam Pharma and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewAmsterdam Pharma position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| NewAmsterdam Pharma vs. Monte Rosa Therapeutics | NewAmsterdam Pharma vs. Inventiva Sa | NewAmsterdam Pharma vs. Cullinan Oncology LLC | NewAmsterdam Pharma vs. Compass Therapeutics |
| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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