Correlation Between Wesana Health and Awakn Life
Can any of the company-specific risk be diversified away by investing in both Wesana Health and Awakn Life 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 Wesana Health and Awakn Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesana Health Holdings and Awakn Life Sciences, you can compare the effects of market volatilities on Wesana Health and Awakn Life 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 Wesana Health with a short position of Awakn Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesana Health and Awakn Life.
Diversification Opportunities for Wesana Health and Awakn Life
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wesana and Awakn is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Wesana Health Holdings and Awakn Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awakn Life Sciences and Wesana Health 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 Wesana Health Holdings are associated (or correlated) with Awakn Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awakn Life Sciences has no effect on the direction of Wesana Health i.e., Wesana Health and Awakn Life go up and down completely randomly.
Pair Corralation between Wesana Health and Awakn Life
Assuming the 90 days horizon Wesana Health Holdings is expected to generate 3.55 times more return on investment than Awakn Life. However, Wesana Health is 3.55 times more volatile than Awakn Life Sciences. It trades about 0.17 of its potential returns per unit of risk. Awakn Life Sciences is currently generating about 0.05 per unit of risk. If you would invest 0.52 in Wesana Health Holdings on September 2, 2024 and sell it today you would lose (0.09) from holding Wesana Health Holdings or give up 17.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesana Health Holdings vs. Awakn Life Sciences
Performance |
| Timeline |
| Wesana Health Holdings |
| Awakn Life Sciences |
Wesana Health and Awakn Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesana Health and Awakn Life
The main advantage of trading using opposite Wesana Health and Awakn Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesana Health position performs unexpectedly, Awakn Life 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 Awakn Life will offset losses from the drop in Awakn Life's long position.| Wesana Health vs. Rigel Pharmaceuticals | Wesana Health vs. Geron | Wesana Health vs. Verastem | Wesana Health vs. Immutep Ltd ADR |
| Awakn Life vs. Nova Mentis Life | Awakn Life vs. PsyBio Therapeutics Corp | Awakn Life vs. HAVN Life Sciences | Awakn Life vs. Cellectis SA |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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