Correlation Between Icecure Medical and Knight Therapeutics
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Knight Therapeutics 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 Icecure Medical and Knight Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and Knight Therapeutics, you can compare the effects of market volatilities on Icecure Medical and Knight Therapeutics 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 Icecure Medical with a short position of Knight Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Knight Therapeutics.
Diversification Opportunities for Icecure Medical and Knight Therapeutics
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icecure and Knight is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Knight Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knight Therapeutics and Icecure Medical 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 Icecure Medical are associated (or correlated) with Knight Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knight Therapeutics has no effect on the direction of Icecure Medical i.e., Icecure Medical and Knight Therapeutics go up and down completely randomly.
Pair Corralation between Icecure Medical and Knight Therapeutics
Given the investment horizon of 90 days Icecure Medical is expected to generate 3.62 times more return on investment than Knight Therapeutics. However, Icecure Medical is 3.62 times more volatile than Knight Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Knight Therapeutics is currently generating about -0.17 per unit of risk. If you would invest 82.00 in Icecure Medical on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Icecure Medical or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Icecure Medical vs. Knight Therapeutics
Performance |
| Timeline |
| Icecure Medical |
| Knight Therapeutics |
Icecure Medical and Knight Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and Knight Therapeutics
The main advantage of trading using opposite Icecure Medical and Knight Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Knight Therapeutics 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 Knight Therapeutics will offset losses from the drop in Knight Therapeutics' long position.| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
| Knight Therapeutics vs. Brainsway | Knight Therapeutics vs. Venus Concept | Knight Therapeutics vs. Tactile Systems Technology | Knight Therapeutics vs. Icecure Medical |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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