Correlation Between Arcellx and Kiniksa Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Arcellx and Kiniksa Pharmaceuticals 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 Arcellx and Kiniksa Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arcellx and Kiniksa Pharmaceuticals, you can compare the effects of market volatilities on Arcellx and Kiniksa Pharmaceuticals 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 Arcellx with a short position of Kiniksa Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arcellx and Kiniksa Pharmaceuticals.
Diversification Opportunities for Arcellx and Kiniksa Pharmaceuticals
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arcellx and Kiniksa is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Arcellx and Kiniksa Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiniksa Pharmaceuticals and Arcellx 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 Arcellx are associated (or correlated) with Kiniksa Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiniksa Pharmaceuticals has no effect on the direction of Arcellx i.e., Arcellx and Kiniksa Pharmaceuticals go up and down completely randomly.
Pair Corralation between Arcellx and Kiniksa Pharmaceuticals
Given the investment horizon of 90 days Arcellx is expected to generate 0.99 times more return on investment than Kiniksa Pharmaceuticals. However, Arcellx is 1.01 times less risky than Kiniksa Pharmaceuticals. It trades about 0.08 of its potential returns per unit of risk. Kiniksa Pharmaceuticals is currently generating about 0.05 per unit of risk. If you would invest 4,069 in Arcellx on August 31, 2024 and sell it today you would earn a total of 4,738 from holding Arcellx or generate 116.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arcellx vs. Kiniksa Pharmaceuticals
Performance |
| Timeline |
| Arcellx |
| Kiniksa Pharmaceuticals |
Arcellx and Kiniksa Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arcellx and Kiniksa Pharmaceuticals
The main advantage of trading using opposite Arcellx and Kiniksa Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arcellx position performs unexpectedly, Kiniksa Pharmaceuticals 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 Kiniksa Pharmaceuticals will offset losses from the drop in Kiniksa Pharmaceuticals' long position.| Arcellx vs. Nuvalent | Arcellx vs. Ventyx Biosciences | Arcellx vs. Amylyx Pharmaceuticals | Arcellx vs. Day One Biopharmaceuticals |
| Kiniksa Pharmaceuticals vs. Nuvalent | Kiniksa Pharmaceuticals vs. Ventyx Biosciences | Kiniksa Pharmaceuticals vs. Arcellx | Kiniksa Pharmaceuticals vs. Cullinan Oncology LLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |