Correlation Between Kineta and Curative Biotechnology
Can any of the company-specific risk be diversified away by investing in both Kineta and Curative Biotechnology 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 Curative Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kineta Inc and Curative Biotechnology, you can compare the effects of market volatilities on Kineta and Curative Biotechnology 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 Curative Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kineta and Curative Biotechnology.
Diversification Opportunities for Kineta and Curative Biotechnology
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kineta and Curative is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kineta Inc and Curative Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curative Biotechnology 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 Curative Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curative Biotechnology has no effect on the direction of Kineta i.e., Kineta and Curative Biotechnology go up and down completely randomly.
Pair Corralation between Kineta and Curative Biotechnology
Allowing for the 90-day total investment horizon Kineta Inc is expected to under-perform the Curative Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Kineta Inc is 3.02 times less risky than Curative Biotechnology. The stock trades about -0.53 of its potential returns per unit of risk. The Curative Biotechnology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Curative Biotechnology on August 28, 2024 and sell it today you would lose (0.13) from holding Curative Biotechnology or give up 13.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kineta Inc vs. Curative Biotechnology
Performance |
| Timeline |
| Kineta Inc |
| Curative Biotechnology |
Kineta and Curative Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kineta and Curative Biotechnology
The main advantage of trading using opposite Kineta and Curative Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kineta position performs unexpectedly, Curative Biotechnology 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 Curative Biotechnology will offset losses from the drop in Curative Biotechnology's long position.| Kineta vs. Eliem Therapeutics | Kineta vs. HCW Biologics | Kineta vs. Scpharmaceuticals | Kineta vs. Milestone Pharmaceuticals |
| Curative Biotechnology vs. Biotron Limited | Curative Biotechnology vs. biOasis Technologies | Curative Biotechnology vs. Covalon Technologies | Curative Biotechnology vs. Mosaic Immunoengineering |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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