Correlation Between SAB Biotherapeutics and Affimed NV
Can any of the company-specific risk be diversified away by investing in both SAB Biotherapeutics 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 SAB Biotherapeutics and Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Biotherapeutics and Affimed NV, you can compare the effects of market volatilities on SAB Biotherapeutics 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 SAB Biotherapeutics with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Biotherapeutics and Affimed NV.
Diversification Opportunities for SAB Biotherapeutics and Affimed NV
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAB and Affimed is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and SAB Biotherapeutics 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 SAB Biotherapeutics 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 SAB Biotherapeutics i.e., SAB Biotherapeutics and Affimed NV go up and down completely randomly.
Pair Corralation between SAB Biotherapeutics and Affimed NV
Given the investment horizon of 90 days SAB Biotherapeutics is expected to under-perform the Affimed NV. In addition to that, SAB Biotherapeutics is 4.6 times more volatile than Affimed NV. It trades about -0.11 of its total potential returns per unit of risk. Affimed NV is currently generating about -0.12 per unit of volatility. If you would invest 115.00 in Affimed NV on November 18, 2024 and sell it today you would lose (9.00) from holding Affimed NV or give up 7.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAB Biotherapeutics vs. Affimed NV
Performance |
| Timeline |
| SAB Biotherapeutics |
| Affimed NV |
SAB Biotherapeutics and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Biotherapeutics and Affimed NV
The main advantage of trading using opposite SAB Biotherapeutics and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Biotherapeutics 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.| SAB Biotherapeutics vs. Processa Pharmaceuticals | SAB Biotherapeutics vs. Third Harmonic Bio | SAB Biotherapeutics vs. Cingulate Warrants | SAB Biotherapeutics vs. Anebulo Pharmaceuticals |
| Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals | Affimed NV vs. Terns 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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