Correlation Between Akeso, and Moderna

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

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

Diversification Opportunities for Akeso, and Moderna

-0.48

Correlation Coefficient

Akeso,  Moderna

Very good diversification

The 3 months correlation between Akeso, and Moderna is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Akeso, Inc and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna 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 Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Akeso, i.e., Akeso, and Moderna go up and down completely randomly.

Pair Corralation between Akeso, and Moderna

Assuming the 90 days horizon Akeso, Inc is expected to generate 0.75 times more return on investment than Moderna. However, Akeso, Inc is 1.34 times less risky than Moderna. It trades about 0.12 of its potential returns per unit of risk. Moderna is currently generating about -0.05 per unit of risk. If you would invest  700.00  in Akeso, Inc on December 29, 2024 and sell it today you would earn a total of  200.00  from holding Akeso, Inc or generate 28.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.31%
Values	Daily Returns

Akeso, Inc  vs.  Moderna

Akeso, Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Akeso, Inc are ranked lower than 9 (%) 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.

Moderna

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moderna has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Akeso, and Moderna

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

The idea behind Akeso, Inc and Moderna 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 Transaction History module to view history of all your transactions and understand their impact on performance.