Correlation Between InfuSystems Holdings and Akoya Biosciences

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

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

Diversification Opportunities for InfuSystems Holdings and Akoya Biosciences

0.77

Correlation Coefficient

InfuSystems Holdings  Akoya Biosciences

Poor diversification

The 3 months correlation between InfuSystems and Akoya is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and InfuSystems Holdings 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 InfuSystems Holdings are associated (or correlated) with Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and Akoya Biosciences go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and Akoya Biosciences

Given the investment horizon of 90 days InfuSystems Holdings is expected to generate 0.76 times more return on investment than Akoya Biosciences. However, InfuSystems Holdings is 1.31 times less risky than Akoya Biosciences. It trades about -0.15 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.15 per unit of risk. If you would invest  800.00  in InfuSystems Holdings on December 30, 2024 and sell it today you would lose (253.00) from holding InfuSystems Holdings or give up 31.62% of portfolio value over 90 days.

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

InfuSystems Holdings  vs.  Akoya Biosciences

InfuSystems Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days InfuSystems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Akoya Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akoya Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with InfuSystems Holdings and Akoya Biosciences

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

The idea behind InfuSystems Holdings and Akoya Biosciences 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.