Correlation Between Akeso, and Genocea Biosciences

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

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

Diversification Opportunities for Akeso, and Genocea Biosciences

0.0

Correlation Coefficient

Akeso,  Genocea Biosciences

Pay attention - limited upside

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

Pair Corralation between Akeso, and Genocea Biosciences

If you would invest  780.00  in Akeso, Inc on December 22, 2024 and sell it today you would earn a total of  120.00  from holding Akeso, Inc or generate 15.38% return on investment over 90 days.

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

Akeso, Inc  vs.  Genocea Biosciences

Akeso, Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Akeso, Inc are ranked lower than 5 (%) 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.

Genocea Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genocea Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Genocea Biosciences is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Akeso, and Genocea Biosciences

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

The idea behind Akeso, Inc and Genocea Biosciences 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.

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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.