Correlation Between Horizon Therapeutics and Akamai Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Horizon Therapeutics and Akamai Technologies 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 Horizon Therapeutics and Akamai Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Therapeutics and Akamai Technologies, you can compare the effects of market volatilities on Horizon Therapeutics and Akamai Technologies 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 Horizon Therapeutics with a short position of Akamai Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Therapeutics and Akamai Technologies.

Diversification Opportunities for Horizon Therapeutics and Akamai Technologies

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Horizon and Akamai is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Therapeutics and Akamai Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akamai Technologies and Horizon 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 Horizon Therapeutics are associated (or correlated) with Akamai Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akamai Technologies has no effect on the direction of Horizon Therapeutics i.e., Horizon Therapeutics and Akamai Technologies go up and down completely randomly.

Pair Corralation between Horizon Therapeutics and Akamai Technologies

Given the investment horizon of 90 days Horizon Therapeutics is expected to generate 1.17 times more return on investment than Akamai Technologies. However, Horizon Therapeutics is 1.17 times more volatile than Akamai Technologies. It trades about 0.17 of its potential returns per unit of risk. Akamai Technologies is currently generating about -0.13 per unit of risk. If you would invest  5,963  in Horizon Therapeutics on July 6, 2022 and sell it today you would earn a total of  463.00  from holding Horizon Therapeutics or generate 7.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Horizon Therapeutics  vs.  Akamai Technologies

 Performance (%) 
       Timeline  
Horizon Therapeutics 
Horizon Performance
0 of 100
Over the last 90 days Horizon Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2022. The recent disarray may also be a sign of long period up-swing for the firm insiders.

Horizon Price Channel

Akamai Technologies 
Akamai Performance
0 of 100
Over the last 90 days Akamai Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Akamai Price Channel

Horizon Therapeutics and Akamai Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Horizon Therapeutics and Akamai Technologies

The main advantage of trading using opposite Horizon Therapeutics and Akamai Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Therapeutics position performs unexpectedly, Akamai Technologies 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 Akamai Technologies will offset losses from the drop in Akamai Technologies' long position.
Horizon Therapeutics vs. Amazon Inc
The idea behind Horizon Therapeutics and Akamai Technologies 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.
Akamai Technologies vs. K L A-Tencor
Akamai Technologies vs. ASM INTERNATIONAL NV
Akamai Technologies vs. Holcim Ltd ADR
Akamai Technologies vs. Applied Materials
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go