Correlation Between Passage Bio and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Passage Bio 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 Passage Bio and Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Passage Bio and Affimed NV, you can compare the effects of market volatilities on Passage Bio 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 Passage Bio with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Passage Bio and Affimed NV.
Diversification Opportunities for Passage Bio and Affimed NV
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Passage and Affimed is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Passage Bio and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and Passage Bio 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 Passage Bio 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 Passage Bio i.e., Passage Bio and Affimed NV go up and down completely randomly.
Pair Corralation between Passage Bio and Affimed NV
Given the investment horizon of 90 days Passage Bio is expected to generate 1.29 times more return on investment than Affimed NV. However, Passage Bio is 1.29 times more volatile than Affimed NV. It trades about 0.0 of its potential returns per unit of risk. Affimed NV is currently generating about -0.07 per unit of risk. If you would invest 66.00 in Passage Bio on August 28, 2024 and sell it today you would lose (4.00) from holding Passage Bio or give up 6.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Passage Bio vs. Affimed NV
Performance |
| Timeline |
| Passage Bio |
| Affimed NV |
Passage Bio and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Passage Bio and Affimed NV
The main advantage of trading using opposite Passage Bio and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Passage Bio 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.| Passage Bio vs. Black Diamond Therapeutics | Passage Bio vs. Revolution Medicines | Passage Bio vs. Stoke Therapeutics | Passage Bio vs. Cabaletta Bio |
| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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