Correlation Between Navidea Biopharmaceutica and Akero Therapeutics
Can any of the company-specific risk be diversified away by investing in both Navidea Biopharmaceutica and Akero 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 Navidea Biopharmaceutica and Akero Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navidea Biopharmaceuticals and Akero Therapeutics, you can compare the effects of market volatilities on Navidea Biopharmaceutica and Akero 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 Navidea Biopharmaceutica with a short position of Akero Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navidea Biopharmaceutica and Akero Therapeutics.
Diversification Opportunities for Navidea Biopharmaceutica and Akero Therapeutics
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Navidea and Akero is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Navidea Biopharmaceuticals and Akero Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akero Therapeutics and Navidea Biopharmaceutica 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 Navidea Biopharmaceuticals are associated (or correlated) with Akero Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akero Therapeutics has no effect on the direction of Navidea Biopharmaceutica i.e., Navidea Biopharmaceutica and Akero Therapeutics go up and down completely randomly.
Pair Corralation between Navidea Biopharmaceutica and Akero Therapeutics
If you would invest 1,945 in Akero Therapeutics on September 4, 2024 and sell it today you would earn a total of 1,130 from holding Akero Therapeutics or generate 58.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Navidea Biopharmaceuticals vs. Akero Therapeutics
Performance |
| Timeline |
| Navidea Biopharmaceutica |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Akero Therapeutics |
Navidea Biopharmaceutica and Akero Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navidea Biopharmaceutica and Akero Therapeutics
The main advantage of trading using opposite Navidea Biopharmaceutica and Akero Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navidea Biopharmaceutica position performs unexpectedly, Akero 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 Akero Therapeutics will offset losses from the drop in Akero Therapeutics' long position.| Navidea Biopharmaceutica vs. NovaBay Pharmaceuticals | Navidea Biopharmaceutica vs. Cyclacel Pharmaceuticals | Navidea Biopharmaceutica vs. Tenax Therapeutics |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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