Correlation Between Terns Pharmaceuticals and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Terns Pharmaceuticals 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 Terns Pharmaceuticals and Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terns Pharmaceuticals and Affimed NV, you can compare the effects of market volatilities on Terns Pharmaceuticals 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 Terns Pharmaceuticals with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terns Pharmaceuticals and Affimed NV.
Diversification Opportunities for Terns Pharmaceuticals and Affimed NV
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Terns and Affimed is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Terns Pharmaceuticals and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and Terns Pharmaceuticals 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 Terns Pharmaceuticals 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 Terns Pharmaceuticals i.e., Terns Pharmaceuticals and Affimed NV go up and down completely randomly.
Pair Corralation between Terns Pharmaceuticals and Affimed NV
Given the investment horizon of 90 days Terns Pharmaceuticals is expected to generate 0.9 times more return on investment than Affimed NV. However, Terns Pharmaceuticals is 1.11 times less risky than Affimed NV. It trades about 0.02 of its potential returns per unit of risk. Affimed NV is currently generating about -0.04 per unit of risk. If you would invest 641.00 in Terns Pharmaceuticals on August 23, 2024 and sell it today you would lose (81.00) from holding Terns Pharmaceuticals or give up 12.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terns Pharmaceuticals vs. Affimed NV
Performance |
| Timeline |
| Terns Pharmaceuticals |
| Affimed NV |
Terns Pharmaceuticals and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terns Pharmaceuticals and Affimed NV
The main advantage of trading using opposite Terns Pharmaceuticals and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terns Pharmaceuticals 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.| Terns Pharmaceuticals vs. Kiora Pharmaceuticals | Terns Pharmaceuticals vs. ZyVersa Therapeutics | Terns Pharmaceuticals vs. Sonnet Biotherapeutics Holdings | Terns Pharmaceuticals vs. Zura Bio Limited |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |