Correlation Between ETFS Coffee and Atossa Therapeutics
Can any of the company-specific risk be diversified away by investing in both ETFS Coffee and Atossa 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 ETFS Coffee and Atossa Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFS Coffee ETC and Atossa Therapeutics, you can compare the effects of market volatilities on ETFS Coffee and Atossa 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 ETFS Coffee with a short position of Atossa Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Coffee and Atossa Therapeutics.
Diversification Opportunities for ETFS Coffee and Atossa Therapeutics
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ETFS and Atossa is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ETFS Coffee ETC and Atossa Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atossa Therapeutics and ETFS Coffee 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 ETFS Coffee ETC are associated (or correlated) with Atossa Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atossa Therapeutics has no effect on the direction of ETFS Coffee i.e., ETFS Coffee and Atossa Therapeutics go up and down completely randomly.
Pair Corralation between ETFS Coffee and Atossa Therapeutics
Assuming the 90 days trading horizon ETFS Coffee ETC is expected to generate 8.81 times more return on investment than Atossa Therapeutics. However, ETFS Coffee is 8.81 times more volatile than Atossa Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Atossa Therapeutics is currently generating about 0.05 per unit of risk. If you would invest 97.00 in ETFS Coffee ETC on September 3, 2024 and sell it today you would earn a total of 5,162 from holding ETFS Coffee ETC or generate 5321.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.61% |
| Values | Daily Returns |
ETFS Coffee ETC vs. Atossa Therapeutics
Performance |
| Timeline |
| ETFS Coffee ETC |
| Atossa Therapeutics |
ETFS Coffee and Atossa Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS Coffee and Atossa Therapeutics
The main advantage of trading using opposite ETFS Coffee and Atossa Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS Coffee position performs unexpectedly, Atossa 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 Atossa Therapeutics will offset losses from the drop in Atossa Therapeutics' long position.| ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc |
| Atossa Therapeutics vs. Suntory Beverage Food | Atossa Therapeutics vs. TRADEDOUBLER AB SK | Atossa Therapeutics vs. National Beverage Corp | Atossa Therapeutics vs. CANON MARKETING JP |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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