Correlation Between Alpha Teknova and Athenex

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

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

Diversification Opportunities for Alpha Teknova and Athenex

-0.74

Correlation Coefficient

Alpha Teknova  Athenex

Pay attention - limited upside

The 3 months correlation between Alpha and Athenex is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Teknova and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex and Alpha Teknova 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 Alpha Teknova are associated (or correlated) with Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of Alpha Teknova i.e., Alpha Teknova and Athenex go up and down completely randomly.

Pair Corralation between Alpha Teknova and Athenex

If you would invest  458.00  in Alpha Teknova on September 5, 2024 and sell it today you would earn a total of  352.00  from holding Alpha Teknova or generate 76.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Alpha Teknova  vs.  Athenex

Alpha Teknova

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Teknova are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Alpha Teknova displayed solid returns over the last few months and may actually be approaching a breakup point.

Athenex

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Alpha Teknova and Athenex

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

The idea behind Alpha Teknova and Athenex 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.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.