Correlation Between Kineta and Pulmatrix
Can any of the company-specific risk be diversified away by investing in both Kineta and Pulmatrix 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 Pulmatrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kineta Inc and Pulmatrix, you can compare the effects of market volatilities on Kineta and Pulmatrix 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 Pulmatrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kineta and Pulmatrix.
Diversification Opportunities for Kineta and Pulmatrix
Very good diversification
The 3 months correlation between Kineta and Pulmatrix is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kineta Inc and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix 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 Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of Kineta i.e., Kineta and Pulmatrix go up and down completely randomly.
Pair Corralation between Kineta and Pulmatrix
Allowing for the 90-day total investment horizon Kineta Inc is expected to under-perform the Pulmatrix. But the stock apears to be less risky and, when comparing its historical volatility, Kineta Inc is 5.29 times less risky than Pulmatrix. The stock trades about -0.48 of its potential returns per unit of risk. The Pulmatrix is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 202.00 in Pulmatrix on August 26, 2024 and sell it today you would earn a total of 410.00 from holding Pulmatrix or generate 202.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Kineta Inc vs. Pulmatrix
Performance |
| Timeline |
| Kineta Inc |
| Pulmatrix |
Kineta and Pulmatrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kineta and Pulmatrix
The main advantage of trading using opposite Kineta and Pulmatrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kineta position performs unexpectedly, Pulmatrix 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 Pulmatrix will offset losses from the drop in Pulmatrix's long position.| Kineta vs. Eliem Therapeutics | Kineta vs. HCW Biologics | Kineta vs. Scpharmaceuticals | Kineta vs. Milestone Pharmaceuticals |
| Pulmatrix vs. Capricor Therapeutics | Pulmatrix vs. Akari Therapeutics PLC | Pulmatrix vs. Soleno Therapeutics | Pulmatrix vs. Bio Path Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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