Correlation Between Akerna Corp and Cerner

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

Diversification Opportunities for Akerna Corp and Cerner

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Akerna and Cerner is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Akerna Corp Cl and Cerner Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerner and Akerna Corp 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 Akerna Corp Cl are associated (or correlated) with Cerner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerner has no effect on the direction of Akerna Corp i.e., Akerna Corp and Cerner go up and down completely randomly.

Pair Corralation between Akerna Corp and Cerner

Given the investment horizon of 90 days Akerna Corp Cl is expected to under-perform the Cerner. In addition to that, Akerna Corp is 31.36 times more volatile than Cerner. It trades about -0.14 of its total potential returns per unit of risk. Cerner is currently generating about 0.17 per unit of volatility. If you would invest  9,113  in Cerner on June 27, 2022 and sell it today you would earn a total of  379.00  from holding Cerner or generate 4.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy55.42%
ValuesDaily Returns

Akerna Corp Cl  vs.  Cerner Corp.

 Performance (%) 
       Timeline  
Akerna Corp Cl 
Akerna Performance
0 of 100
Over the last 90 days Akerna Corp Cl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in October 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Akerna Price Channel

Cerner 
Cerner Performance
0 of 100
Over the last 90 days Cerner has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Cerner is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Akerna Corp and Cerner Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Akerna Corp and Cerner

The main advantage of trading using opposite Akerna Corp and Cerner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akerna Corp position performs unexpectedly, Cerner 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 Cerner will offset losses from the drop in Cerner's long position.
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The idea behind Akerna Corp Cl and Cerner 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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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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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