Correlation Between Onconova Therapeutics and Akari Therapeutics
Can any of the company-specific risk be diversified away by investing in both Onconova Therapeutics and Akari 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 Onconova Therapeutics and Akari Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onconova Therapeutics and Akari Therapeutics PLC, you can compare the effects of market volatilities on Onconova Therapeutics and Akari 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 Onconova Therapeutics with a short position of Akari Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onconova Therapeutics and Akari Therapeutics.
Diversification Opportunities for Onconova Therapeutics and Akari Therapeutics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Onconova and Akari is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Onconova Therapeutics and Akari Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akari Therapeutics PLC and Onconova 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 Onconova Therapeutics are associated (or correlated) with Akari Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akari Therapeutics PLC has no effect on the direction of Onconova Therapeutics i.e., Onconova Therapeutics and Akari Therapeutics go up and down completely randomly.
Pair Corralation between Onconova Therapeutics and Akari Therapeutics
Given the investment horizon of 90 days Onconova Therapeutics is expected to generate 1.22 times more return on investment than Akari Therapeutics. However, Onconova Therapeutics is 1.22 times more volatile than Akari Therapeutics PLC. It trades about 0.06 of its potential returns per unit of risk. Akari Therapeutics PLC is currently generating about -0.04 per unit of risk. If you would invest 76.00 in Onconova Therapeutics on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Onconova Therapeutics or generate 34.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.52% |
| Values | Daily Returns |
Onconova Therapeutics vs. Akari Therapeutics PLC
Performance |
| Timeline |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Akari Therapeutics PLC |
Onconova Therapeutics and Akari Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onconova Therapeutics and Akari Therapeutics
The main advantage of trading using opposite Onconova Therapeutics and Akari Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onconova Therapeutics position performs unexpectedly, Akari 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 Akari Therapeutics will offset losses from the drop in Akari Therapeutics' long position.| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen Inc |
| Akari Therapeutics vs. Armata Pharmaceuticals | Akari Therapeutics vs. Anebulo Pharmaceuticals | Akari Therapeutics vs. Processa Pharmaceuticals | Akari Therapeutics vs. Salarius 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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