Correlation Between Histogen and Kineta
Can any of the company-specific risk be diversified away by investing in both Histogen 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 Histogen and Kineta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and Kineta Inc, you can compare the effects of market volatilities on Histogen 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 Histogen with a short position of Kineta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and Kineta.
Diversification Opportunities for Histogen and Kineta
Very weak diversification
The 3 months correlation between Histogen and Kineta is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Histogen and Kineta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kineta Inc and Histogen 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 Histogen 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 Histogen i.e., Histogen and Kineta go up and down completely randomly.
Pair Corralation between Histogen and Kineta
Given the investment horizon of 90 days Histogen is expected to under-perform the Kineta. In addition to that, Histogen is 5.64 times more volatile than Kineta Inc. It trades about -0.3 of its total potential returns per unit of risk. Kineta Inc is currently generating about -0.48 per unit of volatility. If you would invest 69.00 in Kineta Inc on August 26, 2024 and sell it today you would lose (21.00) from holding Kineta Inc or give up 30.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Histogen vs. Kineta Inc
Performance |
| Timeline |
| Histogen |
| Kineta Inc |
Histogen and Kineta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histogen and Kineta
The main advantage of trading using opposite Histogen and Kineta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen 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.| Histogen vs. Virax Biolabs Group | Histogen vs. Altamira Therapeutics | Histogen vs. Aileron Therapeutics | Histogen vs. Artelo Biosciences |
| Kineta vs. Eliem Therapeutics | Kineta vs. HCW Biologics | Kineta vs. Scpharmaceuticals | Kineta vs. Milestone 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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