Correlation Between Abeona Therapeutics and Achieve Life

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Can any of the company-specific risk be diversified away by investing in both Abeona Therapeutics and Achieve Life 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 Abeona Therapeutics and Achieve Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abeona Therapeutics and Achieve Life Sciences, you can compare the effects of market volatilities on Abeona Therapeutics and Achieve Life 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 Abeona Therapeutics with a short position of Achieve Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abeona Therapeutics and Achieve Life.

Diversification Opportunities for Abeona Therapeutics and Achieve Life

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between Abeona and Achieve is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Abeona Therapeutics and Achieve Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Achieve Life Sciences and Abeona Therapeutics 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 Abeona Therapeutics are associated (or correlated) with Achieve Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Achieve Life Sciences has no effect on the direction of Abeona Therapeutics i.e., Abeona Therapeutics and Achieve Life go up and down completely randomly.

Pair Corralation between Abeona Therapeutics and Achieve Life

Given the investment horizon of 90 days Abeona Therapeutics is expected to generate 1.97 times more return on investment than Achieve Life. However, Abeona Therapeutics is 1.97 times more volatile than Achieve Life Sciences. It trades about 0.07 of its potential returns per unit of risk. Achieve Life Sciences is currently generating about 0.04 per unit of risk. If you would invest  690.00  in Abeona Therapeutics on December 30, 2023 and sell it today you would earn a total of  35.00  from holding Abeona Therapeutics or generate 5.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Abeona Therapeutics  vs.  Achieve Life Sciences

 Performance 
       Timeline  
Abeona Therapeutics 

Risk-Adjusted Performance

8 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Abeona Therapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Abeona Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.
Achieve Life Sciences 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Achieve Life Sciences are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical indicators, Achieve Life showed solid returns over the last few months and may actually be approaching a breakup point.

Abeona Therapeutics and Achieve Life Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Abeona Therapeutics and Achieve Life

The main advantage of trading using opposite Abeona Therapeutics and Achieve Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abeona Therapeutics position performs unexpectedly, Achieve Life 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 Achieve Life will offset losses from the drop in Achieve Life's long position.
The idea behind Abeona Therapeutics and Achieve Life Sciences 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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