Correlation Between Field Trip and Awakn Life
Can any of the company-specific risk be diversified away by investing in both Field Trip and Awakn Life 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 Field Trip and Awakn Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Field Trip Health and Awakn Life Sciences, you can compare the effects of market volatilities on Field Trip and Awakn Life 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 Field Trip with a short position of Awakn Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Field Trip and Awakn Life.
Diversification Opportunities for Field Trip and Awakn Life
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Field and Awakn is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Field Trip Health and Awakn Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awakn Life Sciences and Field Trip 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 Field Trip Health are associated (or correlated) with Awakn Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awakn Life Sciences has no effect on the direction of Field Trip i.e., Field Trip and Awakn Life go up and down completely randomly.
Pair Corralation between Field Trip and Awakn Life
Assuming the 90 days horizon Field Trip is expected to generate 10.16 times less return on investment than Awakn Life. But when comparing it to its historical volatility, Field Trip Health is 1.63 times less risky than Awakn Life. It trades about 0.01 of its potential returns per unit of risk. Awakn Life Sciences is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Awakn Life Sciences on September 23, 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 | 22.74% |
Values | Daily Returns |
Field Trip Health vs. Awakn Life Sciences
Performance |
Timeline |
Field Trip Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Awakn Life Sciences |
Field Trip and Awakn Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Field Trip and Awakn Life
The main advantage of trading using opposite Field Trip and Awakn Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Field Trip position performs unexpectedly, Awakn Life 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 Awakn Life will offset losses from the drop in Awakn Life's long position.Field Trip vs. Rasna Therapeutics | Field Trip vs. Kane Biotech | Field Trip vs. SAB Biotherapeutics | Field Trip vs. India Globalization Capital |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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