Correlation Between Acrivon Therapeutics, and AVTE Old

Can any of the company-specific risk be diversified away by investing in both Acrivon Therapeutics, and AVTE Old 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 AVTE Old 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 AVTE Old, you can compare the effects of market volatilities on Acrivon Therapeutics, and AVTE Old 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 AVTE Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acrivon Therapeutics, and AVTE Old.

Diversification Opportunities for Acrivon Therapeutics, and AVTE Old

0.61

Correlation Coefficient

Acrivon Therapeutics,  AVTE Old

Poor diversification

The 3 months correlation between Acrivon and AVTE is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Acrivon Therapeutics, Common and AVTE Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVTE Old 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 AVTE Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVTE Old has no effect on the direction of Acrivon Therapeutics, i.e., Acrivon Therapeutics, and AVTE Old go up and down completely randomly.

Pair Corralation between Acrivon Therapeutics, and AVTE Old

If you would invest  123.00  in Acrivon Therapeutics, Common on May 7, 2025 and sell it today you would earn a total of  10.00  from holding Acrivon Therapeutics, Common or generate 8.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.64%
Values	Daily Returns

Acrivon Therapeutics, Common  vs.  AVTE Old

Acrivon Therapeutics,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Acrivon Therapeutics, Common are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Acrivon Therapeutics, showed solid returns over the last few months and may actually be approaching a breakup point.

AVTE Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Acrivon Therapeutics, and AVTE Old

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

The idea behind Acrivon Therapeutics, Common and AVTE Old 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.