Correlation Between Awakn Life and MAIA Biotechnology
Can any of the company-specific risk be diversified away by investing in both Awakn Life and MAIA Biotechnology 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 Awakn Life and MAIA Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awakn Life Sciences and MAIA Biotechnology, you can compare the effects of market volatilities on Awakn Life and MAIA Biotechnology 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 Awakn Life with a short position of MAIA Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awakn Life and MAIA Biotechnology.
Diversification Opportunities for Awakn Life and MAIA Biotechnology
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Awakn and MAIA is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Awakn Life Sciences and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology and Awakn Life 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 Awakn Life Sciences are associated (or correlated) with MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of Awakn Life i.e., Awakn Life and MAIA Biotechnology go up and down completely randomly.
Pair Corralation between Awakn Life and MAIA Biotechnology
Assuming the 90 days horizon Awakn Life Sciences is expected to generate 2.25 times more return on investment than MAIA Biotechnology. However, Awakn Life is 2.25 times more volatile than MAIA Biotechnology. It trades about 0.05 of its potential returns per unit of risk. MAIA Biotechnology is currently generating about 0.01 per unit of risk. If you would invest 23.00 in Awakn Life Sciences on September 24, 2024 and sell it today you would lose (16.50) from holding Awakn Life Sciences or give up 71.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Awakn Life Sciences vs. MAIA Biotechnology
Performance |
Timeline |
Awakn Life Sciences |
MAIA Biotechnology |
Awakn Life and MAIA Biotechnology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Awakn Life and MAIA Biotechnology
The main advantage of trading using opposite Awakn Life and MAIA Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awakn Life position performs unexpectedly, MAIA Biotechnology 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 MAIA Biotechnology will offset losses from the drop in MAIA Biotechnology's long position.Awakn Life vs. Nova Mentis Life | Awakn Life vs. PsyBio Therapeutics Corp | Awakn Life vs. HAVN Life Sciences | Awakn Life vs. Cellectis SA |
MAIA Biotechnology vs. Fate Therapeutics | MAIA Biotechnology vs. Sana Biotechnology | MAIA Biotechnology vs. Caribou Biosciences | MAIA Biotechnology vs. Arcus Biosciences |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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