Correlation Between Codiak BioSciences and Kineta
Can any of the company-specific risk be diversified away by investing in both Codiak BioSciences and Kineta 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 Codiak BioSciences and Kineta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codiak BioSciences and Kineta Inc, you can compare the effects of market volatilities on Codiak BioSciences and Kineta 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 Codiak BioSciences with a short position of Kineta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codiak BioSciences and Kineta.
Diversification Opportunities for Codiak BioSciences and Kineta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Codiak and Kineta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Codiak BioSciences and Kineta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kineta Inc and Codiak BioSciences 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 Codiak BioSciences are associated (or correlated) with Kineta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kineta Inc has no effect on the direction of Codiak BioSciences i.e., Codiak BioSciences and Kineta go up and down completely randomly.
Pair Corralation between Codiak BioSciences and Kineta
If you would invest (100.00) in Kineta Inc on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Kineta Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codiak BioSciences vs. Kineta Inc
Performance |
| Timeline |
| Codiak BioSciences |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Kineta Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Codiak BioSciences and Kineta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codiak BioSciences and Kineta
The main advantage of trading using opposite Codiak BioSciences and Kineta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codiak BioSciences position performs unexpectedly, Kineta 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 Kineta will offset losses from the drop in Kineta's long position.| Codiak BioSciences vs. Lowes Companies | Codiak BioSciences vs. Federal Home Loan | Codiak BioSciences vs. Bassett Furniture Industries | Codiak BioSciences vs. Transcontinental Realty Investors |
| Kineta vs. Rezolute | Kineta vs. XOMA Corporation | Kineta vs. Protagenic Therapeutics | Kineta vs. Tempest Therapeutics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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