Correlation Between Enlivex Therapeutics and Kamada
Can any of the company-specific risk be diversified away by investing in both Enlivex Therapeutics 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 Enlivex Therapeutics and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enlivex Therapeutics and Kamada, you can compare the effects of market volatilities on Enlivex Therapeutics 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 Enlivex Therapeutics with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlivex Therapeutics and Kamada.
Diversification Opportunities for Enlivex Therapeutics and Kamada
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enlivex and Kamada is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Enlivex Therapeutics and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Enlivex Therapeutics 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 Enlivex Therapeutics 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 Enlivex Therapeutics i.e., Enlivex Therapeutics and Kamada go up and down completely randomly.
Pair Corralation between Enlivex Therapeutics and Kamada
Assuming the 90 days trading horizon Enlivex Therapeutics is expected to under-perform the Kamada. In addition to that, Enlivex Therapeutics is 2.25 times more volatile than Kamada. It trades about -0.23 of its total potential returns per unit of risk. Kamada is currently generating about -0.08 per unit of volatility. If you would invest 216,600 in Kamada on September 1, 2024 and sell it today you would lose (6,000) from holding Kamada or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enlivex Therapeutics vs. Kamada
Performance |
| Timeline |
| Enlivex Therapeutics |
| Kamada |
Enlivex Therapeutics and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enlivex Therapeutics and Kamada
The main advantage of trading using opposite Enlivex Therapeutics and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlivex Therapeutics 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.| Enlivex Therapeutics vs. Discount Investment Corp | Enlivex Therapeutics vs. GODM Investments | Enlivex Therapeutics vs. IDI Insurance | Enlivex Therapeutics vs. Harel Insurance Investments |
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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 the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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