Correlation Between Zura Bio and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Zura 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 Zura 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 Zura Bio Limited and Affimed NV, you can compare the effects of market volatilities on Zura 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 Zura Bio with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Affimed NV.
Diversification Opportunities for Zura Bio and Affimed NV
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zura and Affimed is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and Zura 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 Zura Bio Limited 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 Zura Bio i.e., Zura Bio and Affimed NV go up and down completely randomly.
Pair Corralation between Zura Bio and Affimed NV
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the Affimed NV. In addition to that, Zura Bio is 1.1 times more volatile than Affimed NV. It trades about -0.24 of its total potential returns per unit of risk. Affimed NV is currently generating about -0.08 per unit of volatility. If you would invest 323.00 in Affimed NV on September 1, 2024 and sell it today you would lose (39.00) from holding Affimed NV or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zura Bio Limited vs. Affimed NV
Performance |
| Timeline |
| Zura Bio Limited |
| Affimed NV |
Zura Bio and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and Affimed NV
The main advantage of trading using opposite Zura Bio and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura 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.| Zura Bio vs. Tff Pharmaceuticals | Zura Bio vs. Eliem Therapeutics | Zura Bio vs. Inhibrx | Zura Bio vs. Enliven Therapeutics |
| Affimed NV vs. Tff Pharmaceuticals | Affimed NV vs. Eliem Therapeutics | Affimed NV vs. Inhibrx | Affimed NV vs. Enliven 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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