Correlation Between Agios Pharm and Kamada
Can any of the company-specific risk be diversified away by investing in both Agios Pharm 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 Agios Pharm and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agios Pharm and Kamada, you can compare the effects of market volatilities on Agios Pharm 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 Agios Pharm with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agios Pharm and Kamada.
Diversification Opportunities for Agios Pharm and Kamada
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agios and Kamada is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Agios Pharm and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Agios Pharm 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 Agios Pharm 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 Agios Pharm i.e., Agios Pharm and Kamada go up and down completely randomly.
Pair Corralation between Agios Pharm and Kamada
Given the investment horizon of 90 days Agios Pharm is expected to generate 3.41 times less return on investment than Kamada. But when comparing it to its historical volatility, Agios Pharm is 1.19 times less risky than Kamada. It trades about 0.06 of its potential returns per unit of risk. Kamada is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 609.00 in Kamada on November 1, 2024 and sell it today you would earn a total of 65.00 from holding Kamada or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Agios Pharm vs. Kamada
Performance |
| Timeline |
| Agios Pharm |
| Kamada |
Agios Pharm and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agios Pharm and Kamada
The main advantage of trading using opposite Agios Pharm and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agios Pharm 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.| Agios Pharm vs. Surrozen | Agios Pharm vs. Armata Pharmaceuticals | Agios Pharm vs. Pasithea Therapeutics Corp | Agios Pharm vs. Aditxt Inc |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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