Correlation Between Akeso, and Eyenovia

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

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

Diversification Opportunities for Akeso, and Eyenovia

-0.36

Correlation Coefficient

Akeso,  Eyenovia

Very good diversification

The 3 months correlation between Akeso, and Eyenovia is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Akeso, Inc and Eyenovia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyenovia and Akeso, 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 Akeso, Inc are associated (or correlated) with Eyenovia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyenovia has no effect on the direction of Akeso, i.e., Akeso, and Eyenovia go up and down completely randomly.

Pair Corralation between Akeso, and Eyenovia

Assuming the 90 days horizon Akeso, Inc is expected to generate 0.58 times more return on investment than Eyenovia. However, Akeso, Inc is 1.73 times less risky than Eyenovia. It trades about 0.15 of its potential returns per unit of risk. Eyenovia is currently generating about -0.13 per unit of risk. If you would invest  568.00  in Akeso, Inc on August 30, 2024 and sell it today you would earn a total of  392.00  from holding Akeso, Inc or generate 69.01% return on investment over 90 days.

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

Akeso, Inc  vs.  Eyenovia

Akeso, Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Akeso, Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Akeso, reported solid returns over the last few months and may actually be approaching a breakup point.

Eyenovia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eyenovia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Akeso, and Eyenovia

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

The idea behind Akeso, Inc and Eyenovia 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.