Correlation Between Khiron Life and Alpha Teknova
Can any of the company-specific risk be diversified away by investing in both Khiron Life and Alpha Teknova 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 Khiron Life and Alpha Teknova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and Alpha Teknova, you can compare the effects of market volatilities on Khiron Life and Alpha Teknova 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 Khiron Life with a short position of Alpha Teknova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and Alpha Teknova.
Diversification Opportunities for Khiron Life and Alpha Teknova
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and Alpha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and Alpha Teknova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Teknova and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with Alpha Teknova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Teknova has no effect on the direction of Khiron Life i.e., Khiron Life and Alpha Teknova go up and down completely randomly.
Pair Corralation between Khiron Life and Alpha Teknova
Assuming the 90 days horizon Khiron Life Sciences is expected to generate 10.47 times more return on investment than Alpha Teknova. However, Khiron Life is 10.47 times more volatile than Alpha Teknova. It trades about 0.06 of its potential returns per unit of risk. Alpha Teknova is currently generating about 0.04 per unit of risk. If you would invest 4.40 in Khiron Life Sciences on August 29, 2024 and sell it today you would lose (4.39) from holding Khiron Life Sciences or give up 99.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khiron Life Sciences vs. Alpha Teknova
Performance |
| Timeline |
| Khiron Life Sciences |
| Alpha Teknova |
Khiron Life and Alpha Teknova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and Alpha Teknova
The main advantage of trading using opposite Khiron Life and Alpha Teknova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, Alpha Teknova 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 Alpha Teknova will offset losses from the drop in Alpha Teknova's long position.| Khiron Life vs. Blueberries Medical Corp | Khiron Life vs. Speakeasy Cannabis Club | Khiron Life vs. City View Green | Khiron Life vs. Benchmark Botanics |
| Alpha Teknova vs. Phibro Animal Health | Alpha Teknova vs. Procaps Group SA | Alpha Teknova vs. Amphastar P | Alpha Teknova vs. Alkermes Plc |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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