Correlation Between Affimed NV and Kamada
Can any of the company-specific risk be diversified away by investing in both Affimed NV and Kamada 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 Affimed NV and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and Kamada, you can compare the effects of market volatilities on Affimed NV and Kamada 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 Affimed NV with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and Kamada.
Diversification Opportunities for Affimed NV and Kamada
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Affimed and Kamada is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Affimed NV 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 Affimed NV are associated (or correlated) with Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Affimed NV i.e., Affimed NV and Kamada go up and down completely randomly.
Pair Corralation between Affimed NV and Kamada
Given the investment horizon of 90 days Affimed NV is expected to under-perform the Kamada. In addition to that, Affimed NV is 2.35 times more volatile than Kamada. It trades about -0.05 of its total potential returns per unit of risk. Kamada is currently generating about 0.05 per unit of volatility. If you would invest 430.00 in Kamada on November 1, 2024 and sell it today you would earn a total of 244.00 from holding Kamada or generate 56.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Affimed NV vs. Kamada
Performance |
| Timeline |
| Affimed NV |
| Kamada |
Affimed NV and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and Kamada
The main advantage of trading using opposite Affimed NV and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.| Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals | Affimed NV vs. Terns Pharmaceuticals |
| Kamada vs. Lifecore Biomedical | Kamada vs. Shuttle Pharmaceuticals | Kamada vs. Cumberland Pharmaceuticals | Kamada vs. Ironwood Pharmaceuticals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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