Correlation Between Kineta and Celularity
Can any of the company-specific risk be diversified away by investing in both Kineta and Celularity 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 Celularity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kineta Inc and Celularity, you can compare the effects of market volatilities on Kineta and Celularity 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 Celularity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kineta and Celularity.
Diversification Opportunities for Kineta and Celularity
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kineta and Celularity is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kineta Inc and Celularity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celularity 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 Celularity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celularity has no effect on the direction of Kineta i.e., Kineta and Celularity go up and down completely randomly.
Pair Corralation between Kineta and Celularity
Allowing for the 90-day total investment horizon Kineta Inc is expected to under-perform the Celularity. But the stock apears to be less risky and, when comparing its historical volatility, Kineta Inc is 5.65 times less risky than Celularity. The stock trades about -0.47 of its potential returns per unit of risk. The Celularity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.88 in Celularity on August 25, 2024 and sell it today you would earn a total of 0.32 from holding Celularity or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Kineta Inc vs. Celularity
Performance |
| Timeline |
| Kineta Inc |
| Celularity |
Kineta and Celularity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kineta and Celularity
The main advantage of trading using opposite Kineta and Celularity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kineta position performs unexpectedly, Celularity 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 Celularity will offset losses from the drop in Celularity's long position.| Kineta vs. Eliem Therapeutics | Kineta vs. HCW Biologics | Kineta vs. Scpharmaceuticals | Kineta vs. Milestone Pharmaceuticals |
| Celularity vs. Celularity | Celularity vs. Quantum Si incorporated | Celularity vs. Humacyte | Celularity vs. Surrozen Warrant |
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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