Correlation Between Akerna Corp and Immatics Biotechnologies

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

By analyzing existing cross correlation between Akerna Corp and immatics biotechnologies GmbH, you can compare the effects of market volatilities on Akerna Corp and Immatics Biotechnologies 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 Akerna Corp with a short position of Immatics Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akerna Corp and Immatics Biotechnologies.

Diversification Opportunities for Akerna Corp and Immatics Biotechnologies

-0.49

Correlation Coefficient

Akerna Corp  Immatics Biotechnologies

Very good diversification

The 3 months correlation between Akerna and Immatics is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Akerna Corp and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies and Akerna Corp 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 Akerna Corp are associated (or correlated) with Immatics Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of Akerna Corp i.e., Akerna Corp and Immatics Biotechnologies go up and down completely randomly.

Pair Corralation between Akerna Corp and Immatics Biotechnologies

If you would invest  3.80  in Akerna Corp on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Akerna Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.75%
Values	Daily Returns

Akerna Corp  vs.  immatics biotechnologies GmbH

Akerna Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akerna Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Akerna Corp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Immatics Biotechnologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days immatics biotechnologies GmbH has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Akerna Corp and Immatics Biotechnologies

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

The idea behind Akerna Corp and immatics biotechnologies GmbH 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.