Correlation Between Kineta and Lisata Therapeutics
Can any of the company-specific risk be diversified away by investing in both Kineta and Lisata 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 Lisata 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 Lisata Therapeutics, you can compare the effects of market volatilities on Kineta and Lisata 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 Lisata Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kineta and Lisata Therapeutics.
Diversification Opportunities for Kineta and Lisata Therapeutics
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kineta and Lisata is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kineta Inc and Lisata Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lisata 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 Lisata Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lisata Therapeutics has no effect on the direction of Kineta i.e., Kineta and Lisata Therapeutics go up and down completely randomly.
Pair Corralation between Kineta and Lisata Therapeutics
Allowing for the 90-day total investment horizon Kineta Inc is expected to under-perform the Lisata Therapeutics. In addition to that, Kineta is 2.36 times more volatile than Lisata Therapeutics. It trades about -0.03 of its total potential returns per unit of risk. Lisata Therapeutics is currently generating about 0.01 per unit of volatility. If you would invest 305.00 in Lisata Therapeutics on August 30, 2024 and sell it today you would lose (23.00) from holding Lisata Therapeutics or give up 7.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Kineta Inc vs. Lisata Therapeutics
Performance |
| Timeline |
| Kineta Inc |
| Lisata Therapeutics |
Kineta and Lisata Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kineta and Lisata Therapeutics
The main advantage of trading using opposite Kineta and Lisata Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kineta position performs unexpectedly, Lisata 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 Lisata Therapeutics will offset losses from the drop in Lisata Therapeutics' long position.| Kineta vs. Rezolute | Kineta vs. XOMA Corporation | Kineta vs. Protagenic Therapeutics | Kineta vs. Tempest Therapeutics |
| Lisata Therapeutics vs. Lixte Biotechnology Holdings | Lisata Therapeutics vs. Histogen | Lisata Therapeutics vs. Imunon Inc | Lisata Therapeutics vs. Kineta Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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