Correlation Between Kineta and C4 Therapeutics
Can any of the company-specific risk be diversified away by investing in both Kineta and C4 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 Kineta and C4 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kineta Inc and C4 Therapeutics, you can compare the effects of market volatilities on Kineta and C4 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 Kineta with a short position of C4 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kineta and C4 Therapeutics.
Diversification Opportunities for Kineta and C4 Therapeutics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kineta and CCCC is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kineta Inc and C4 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C4 Therapeutics and Kineta 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 Kineta Inc are associated (or correlated) with C4 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C4 Therapeutics has no effect on the direction of Kineta i.e., Kineta and C4 Therapeutics go up and down completely randomly.
Pair Corralation between Kineta and C4 Therapeutics
Allowing for the 90-day total investment horizon Kineta Inc is expected to under-perform the C4 Therapeutics. In addition to that, Kineta is 1.89 times more volatile than C4 Therapeutics. It trades about -0.03 of its total potential returns per unit of risk. C4 Therapeutics is currently generating about -0.01 per unit of volatility. If you would invest 618.00 in C4 Therapeutics on August 28, 2024 and sell it today you would lose (180.00) from holding C4 Therapeutics or give up 29.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.56% |
| Values | Daily Returns |
Kineta Inc vs. C4 Therapeutics
Performance |
| Timeline |
| Kineta Inc |
| C4 Therapeutics |
Kineta and C4 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kineta and C4 Therapeutics
The main advantage of trading using opposite Kineta and C4 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kineta position performs unexpectedly, C4 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 C4 Therapeutics will offset losses from the drop in C4 Therapeutics' long position.| Kineta vs. Rezolute | Kineta vs. XOMA Corporation | Kineta vs. Protagenic Therapeutics | Kineta vs. Tempest Therapeutics |
| C4 Therapeutics vs. Shattuck Labs | C4 Therapeutics vs. Eliem Therapeutics | C4 Therapeutics vs. Prelude Therapeutics | C4 Therapeutics vs. Monte Rosa 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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