Correlation Between Acrivon Therapeutics, and Biocardia

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

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

Diversification Opportunities for Acrivon Therapeutics, and Biocardia

-0.38

Correlation Coefficient

Acrivon Therapeutics,  Biocardia

Very good diversification

The 3 months correlation between Acrivon and Biocardia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Acrivon Therapeutics, Common and Biocardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocardia and Acrivon 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 Acrivon Therapeutics, Common are associated (or correlated) with Biocardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocardia has no effect on the direction of Acrivon Therapeutics, i.e., Acrivon Therapeutics, and Biocardia go up and down completely randomly.

Pair Corralation between Acrivon Therapeutics, and Biocardia

Given the investment horizon of 90 days Acrivon Therapeutics, Common is expected to under-perform the Biocardia. In addition to that, Acrivon Therapeutics, is 1.7 times more volatile than Biocardia. It trades about -0.11 of its total potential returns per unit of risk. Biocardia is currently generating about 0.11 per unit of volatility. If you would invest  215.00  in Biocardia on December 30, 2024 and sell it today you would earn a total of  65.00  from holding Biocardia or generate 30.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Acrivon Therapeutics, Common  vs.  Biocardia

Acrivon Therapeutics,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acrivon Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Biocardia

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Biocardia are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental indicators, Biocardia sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acrivon Therapeutics, and Biocardia

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

The idea behind Acrivon Therapeutics, Common and Biocardia 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.