Correlation Between Aerkomm and CAMP4 THERAPEUTICS

Can any of the company-specific risk be diversified away by investing in both Aerkomm and CAMP4 THERAPEUTICS 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 Aerkomm and CAMP4 THERAPEUTICS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aerkomm and CAMP4 THERAPEUTICS PORATION, you can compare the effects of market volatilities on Aerkomm and CAMP4 THERAPEUTICS 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 Aerkomm with a short position of CAMP4 THERAPEUTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerkomm and CAMP4 THERAPEUTICS.

Diversification Opportunities for Aerkomm and CAMP4 THERAPEUTICS

0.0

Correlation Coefficient

Aerkomm  CAMP4 THERAPEUTICS

Pay attention - limited upside

The 3 months correlation between Aerkomm and CAMP4 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aerkomm and CAMP4 THERAPEUTICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMP4 THERAPEUTICS and Aerkomm 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 Aerkomm are associated (or correlated) with CAMP4 THERAPEUTICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMP4 THERAPEUTICS has no effect on the direction of Aerkomm i.e., Aerkomm and CAMP4 THERAPEUTICS go up and down completely randomly.

Pair Corralation between Aerkomm and CAMP4 THERAPEUTICS

If you would invest  541.00  in CAMP4 THERAPEUTICS PORATION on December 28, 2024 and sell it today you would lose (99.00) from holding CAMP4 THERAPEUTICS PORATION or give up 18.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Aerkomm  vs.  CAMP4 THERAPEUTICS PORATION

Aerkomm

Risk-Adjusted Performance

Very Weak

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

CAMP4 THERAPEUTICS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CAMP4 THERAPEUTICS PORATION are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent primary indicators, CAMP4 THERAPEUTICS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aerkomm and CAMP4 THERAPEUTICS

The main advantage of trading using opposite Aerkomm and CAMP4 THERAPEUTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerkomm position performs unexpectedly, CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS will offset losses from the drop in CAMP4 THERAPEUTICS's long position.

The idea behind Aerkomm and CAMP4 THERAPEUTICS PORATION 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.