Correlation Between Repligen and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Repligen 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 Repligen and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Akanda Corp, you can compare the effects of market volatilities on Repligen 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 Repligen with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Akanda Corp.
Diversification Opportunities for Repligen and Akanda Corp
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Repligen and Akanda is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and Repligen 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 Repligen 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 Repligen i.e., Repligen and Akanda Corp go up and down completely randomly.
Pair Corralation between Repligen and Akanda Corp
Given the investment horizon of 90 days Repligen is expected to generate 0.35 times more return on investment than Akanda Corp. However, Repligen is 2.9 times less risky than Akanda Corp. It trades about 0.01 of its potential returns per unit of risk. Akanda Corp is currently generating about -0.06 per unit of risk. If you would invest 16,219 in Repligen on September 1, 2024 and sell it today you would lose (1,165) from holding Repligen or give up 7.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Akanda Corp
Performance |
| Timeline |
| Repligen |
| Akanda Corp |
Repligen and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Akanda Corp
The main advantage of trading using opposite Repligen and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen 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.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Akanda Corp vs. Cue Biopharma | Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Lantern Pharma | Akanda Corp vs. Eliem Therapeutics |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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