Correlation Between CAMP4 THERAPEUTICS and Aerkomm

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

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

Diversification Opportunities for CAMP4 THERAPEUTICS and Aerkomm

0.0

Correlation Coefficient

CAMP4 THERAPEUTICS  Aerkomm

Pay attention - limited upside

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

Pair Corralation between CAMP4 THERAPEUTICS and Aerkomm

If you would invest  507.00  in CAMP4 THERAPEUTICS PORATION on December 2, 2024 and sell it today you would lose (16.00) from holding CAMP4 THERAPEUTICS PORATION or give up 3.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.85%
Values	Daily Returns

CAMP4 THERAPEUTICS PORATION  vs.  Aerkomm

CAMP4 THERAPEUTICS

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CAMP4 THERAPEUTICS PORATION are ranked lower than 4 (%) 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.

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.

Pair Trading with CAMP4 THERAPEUTICS and Aerkomm

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

The idea behind CAMP4 THERAPEUTICS PORATION and Aerkomm 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.