Correlation Between Field Trip and Kane Biotech
Can any of the company-specific risk be diversified away by investing in both Field Trip and Kane Biotech 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 Field Trip and Kane Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Field Trip Health and Kane Biotech, you can compare the effects of market volatilities on Field Trip and Kane Biotech 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 Field Trip with a short position of Kane Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Field Trip and Kane Biotech.
Diversification Opportunities for Field Trip and Kane Biotech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Field and Kane is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Field Trip Health and Kane Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kane Biotech and Field Trip 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 Field Trip Health are associated (or correlated) with Kane Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kane Biotech has no effect on the direction of Field Trip i.e., Field Trip and Kane Biotech go up and down completely randomly.
Pair Corralation between Field Trip and Kane Biotech
If you would invest 8.11 in Kane Biotech on November 27, 2024 and sell it today you would lose (1.39) from holding Kane Biotech or give up 17.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Field Trip Health vs. Kane Biotech
Performance |
| Timeline |
| Field Trip Health |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Kane Biotech |
Field Trip and Kane Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Field Trip and Kane Biotech
The main advantage of trading using opposite Field Trip and Kane Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Field Trip position performs unexpectedly, Kane Biotech 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 Kane Biotech will offset losses from the drop in Kane Biotech's long position.| Field Trip vs. Rasna Therapeutics | Field Trip vs. Kane Biotech | Field Trip vs. SAB Biotherapeutics | Field Trip vs. India Globalization Capital |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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