Correlation Between Achilles Therapeutics and ELYM Old

Can any of the company-specific risk be diversified away by investing in both Achilles Therapeutics and ELYM Old 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 Achilles Therapeutics and ELYM Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Achilles Therapeutics PLC and ELYM Old, you can compare the effects of market volatilities on Achilles Therapeutics and ELYM Old 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 Achilles Therapeutics with a short position of ELYM Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Achilles Therapeutics and ELYM Old.

Diversification Opportunities for Achilles Therapeutics and ELYM Old

0.0

Correlation Coefficient

Achilles Therapeutics  ELYM Old

Pay attention - limited upside

The 3 months correlation between Achilles and ELYM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Achilles Therapeutics PLC and ELYM Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELYM Old and Achilles Therapeutics 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 Achilles Therapeutics PLC are associated (or correlated) with ELYM Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELYM Old has no effect on the direction of Achilles Therapeutics i.e., Achilles Therapeutics and ELYM Old go up and down completely randomly.

Pair Corralation between Achilles Therapeutics and ELYM Old

If you would invest  107.00  in Achilles Therapeutics PLC on November 21, 2024 and sell it today you would earn a total of  32.00  from holding Achilles Therapeutics PLC or generate 29.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Achilles Therapeutics PLC  vs.  ELYM Old

Achilles Therapeutics PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Achilles Therapeutics PLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical indicators, Achilles Therapeutics disclosed solid returns over the last few months and may actually be approaching a breakup point.

ELYM Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days ELYM Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, ELYM Old is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Achilles Therapeutics and ELYM Old

The main advantage of trading using opposite Achilles Therapeutics and ELYM Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Achilles Therapeutics position performs unexpectedly, ELYM Old 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 ELYM Old will offset losses from the drop in ELYM Old's long position.

The idea behind Achilles Therapeutics PLC and ELYM Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.