Correlation Between Straumann Holding and Akoya Biosciences
Can any of the company-specific risk be diversified away by investing in both Straumann Holding 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 Straumann Holding and Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and Akoya Biosciences, you can compare the effects of market volatilities on Straumann Holding 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 Straumann Holding with a short position of Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and Akoya Biosciences.
Diversification Opportunities for Straumann Holding and Akoya Biosciences
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Straumann and Akoya is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and Straumann Holding 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 Straumann Holding AG 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 Straumann Holding i.e., Straumann Holding and Akoya Biosciences go up and down completely randomly.
Pair Corralation between Straumann Holding and Akoya Biosciences
Assuming the 90 days horizon Straumann Holding AG is expected to generate 0.43 times more return on investment than Akoya Biosciences. However, Straumann Holding AG is 2.33 times less risky than Akoya Biosciences. It trades about -0.02 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.04 per unit of risk. If you would invest 1,672 in Straumann Holding AG on September 10, 2024 and sell it today you would lose (349.00) from holding Straumann Holding AG or give up 20.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Straumann Holding AG vs. Akoya Biosciences
Performance |
Timeline |
Straumann Holding |
Akoya Biosciences |
Straumann Holding and Akoya Biosciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Straumann Holding and Akoya Biosciences
The main advantage of trading using opposite Straumann Holding and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding 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.Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding vs. EssilorLuxottica Socit anonyme |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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