Correlation Between Predictive Oncology and Akoya Biosciences

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

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

Diversification Opportunities for Predictive Oncology and Akoya Biosciences

-0.23

Correlation Coefficient

Predictive Oncology  Akoya Biosciences

Very good diversification

The 3 months correlation between Predictive and Akoya is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Predictive Oncology and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and Predictive Oncology 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 Predictive Oncology 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 Predictive Oncology i.e., Predictive Oncology and Akoya Biosciences go up and down completely randomly.

Pair Corralation between Predictive Oncology and Akoya Biosciences

Given the investment horizon of 90 days Predictive Oncology is expected to under-perform the Akoya Biosciences. In addition to that, Predictive Oncology is 1.03 times more volatile than Akoya Biosciences. It trades about -0.02 of its total potential returns per unit of risk. Akoya Biosciences is currently generating about 0.0 per unit of volatility. If you would invest  238.00  in Akoya Biosciences on August 31, 2024 and sell it today you would lose (24.00) from holding Akoya Biosciences or give up 10.08% of portfolio value over 90 days.

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

Predictive Oncology  vs.  Akoya Biosciences

Predictive Oncology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Predictive Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Akoya Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akoya Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Akoya Biosciences is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Predictive Oncology and Akoya Biosciences

The main advantage of trading using opposite Predictive Oncology and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Predictive Oncology 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 Predictive Oncology 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.