Correlation Between Altimmune and Danaher
Can any of the company-specific risk be diversified away by investing in both Altimmune and Danaher 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 Altimmune and Danaher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altimmune and Danaher, you can compare the effects of market volatilities on Altimmune and Danaher 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 Altimmune with a short position of Danaher. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimmune and Danaher.
Diversification Opportunities for Altimmune and Danaher
Weak diversification
The 3 months correlation between Altimmune and Danaher is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Altimmune and Danaher in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danaher and Altimmune 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 Altimmune are associated (or correlated) with Danaher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danaher has no effect on the direction of Altimmune i.e., Altimmune and Danaher go up and down completely randomly.
Pair Corralation between Altimmune and Danaher
Considering the 90-day investment horizon Altimmune is expected to generate 3.87 times more return on investment than Danaher. However, Altimmune is 3.87 times more volatile than Danaher. It trades about 0.05 of its potential returns per unit of risk. Danaher is currently generating about 0.02 per unit of risk. If you would invest 438.00 in Altimmune on January 25, 2024 and sell it today you would earn a total of 319.00 from holding Altimmune or generate 72.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Altimmune vs. Danaher
Performance |
Timeline |
Altimmune |
Danaher |
Altimmune and Danaher Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Altimmune and Danaher
The main advantage of trading using opposite Altimmune and Danaher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimmune position performs unexpectedly, Danaher 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 Danaher will offset losses from the drop in Danaher's long position.Altimmune vs. Reviva Pharmaceuticals Holdings | Altimmune vs. Athira PharmaInc | Altimmune vs. Fortress Biotech | Altimmune vs. ACADIA Pharmaceuticals |
Danaher vs. HealthStream | Danaher vs. National Research Corp | Danaher vs. HealthEquity | Danaher vs. Health Catalyst |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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