Correlation Between Acrivon Therapeutics and Anpac Bio

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

By analyzing existing cross correlation between Acrivon Therapeutics Common and Anpac Bio Medical, you can compare the effects of market volatilities on Acrivon Therapeutics and Anpac Bio 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 Acrivon Therapeutics with a short position of Anpac Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acrivon Therapeutics and Anpac Bio.

Diversification Opportunities for Acrivon Therapeutics and Anpac Bio

-0.83

Correlation Coefficient

Acrivon Therapeutics  Anpac Bio

Pay attention - limited upside

The 3 months correlation between Acrivon and Anpac is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Acrivon Therapeutics Common and Anpac Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anpac Bio Medical and Acrivon 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 Acrivon Therapeutics Common are associated (or correlated) with Anpac Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anpac Bio Medical has no effect on the direction of Acrivon Therapeutics i.e., Acrivon Therapeutics and Anpac Bio go up and down completely randomly.

Pair Corralation between Acrivon Therapeutics and Anpac Bio

If you would invest  505.00  in Acrivon Therapeutics Common on March 4, 2024 and sell it today you would earn a total of  267.00  from holding Acrivon Therapeutics Common or generate 52.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Acrivon Therapeutics Common  vs.  Anpac Bio Medical

Acrivon Therapeutics

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Acrivon Therapeutics Common are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Acrivon Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Anpac Bio Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anpac Bio Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Anpac Bio is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Acrivon Therapeutics and Anpac Bio

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

The idea behind Acrivon Therapeutics Common and Anpac Bio Medical 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.