Correlation Between Akoya Biosciences and Precision Optics,

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

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

Diversification Opportunities for Akoya Biosciences and Precision Optics,

-0.39

Correlation Coefficient

Akoya Biosciences  Precision Optics,

Very good diversification

The 3 months correlation between Akoya and Precision is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Akoya Biosciences and Precision Optics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precision Optics, and Akoya Biosciences 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 Akoya Biosciences are associated (or correlated) with Precision Optics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precision Optics, has no effect on the direction of Akoya Biosciences i.e., Akoya Biosciences and Precision Optics, go up and down completely randomly.

Pair Corralation between Akoya Biosciences and Precision Optics,

Given the investment horizon of 90 days Akoya Biosciences is expected to generate 1.23 times more return on investment than Precision Optics,. However, Akoya Biosciences is 1.23 times more volatile than Precision Optics,. It trades about 0.01 of its potential returns per unit of risk. Precision Optics, is currently generating about -0.03 per unit of risk. If you would invest  238.00  in Akoya Biosciences on September 3, 2024 and sell it today you would lose (18.00) from holding Akoya Biosciences or give up 7.56% of portfolio value over 90 days.

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

Akoya Biosciences  vs.  Precision Optics,

Akoya Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akoya Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Akoya Biosciences is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Precision Optics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Precision Optics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Akoya Biosciences and Precision Optics,

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

The idea behind Akoya Biosciences and Precision Optics, 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.