Correlation Between Aerovate Therapeutics and Takung Art

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

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

Diversification Opportunities for Aerovate Therapeutics and Takung Art

0.0

Correlation Coefficient

Aerovate Therapeutics  Takung Art

Pay attention - limited upside

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

Pair Corralation between Aerovate Therapeutics and Takung Art

If you would invest (100.00) in Takung Art Co on December 2, 2024 and sell it today you would earn a total of  100.00  from holding Takung Art Co or generate -100.0% return on investment over 90 days.

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

Aerovate Therapeutics  vs.  Takung Art Co

Aerovate Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aerovate Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Takung Art

Risk-Adjusted Performance

Very Weak

Over the last 90 days Takung Art Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Takung Art is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Aerovate Therapeutics and Takung Art

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

The idea behind Aerovate Therapeutics and Takung Art Co 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..