Correlation Between Kamada and Enlivex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Kamada and Enlivex 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 Kamada and Enlivex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Enlivex Therapeutics, you can compare the effects of market volatilities on Kamada and Enlivex 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 Kamada with a short position of Enlivex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Enlivex Therapeutics.
Diversification Opportunities for Kamada and Enlivex Therapeutics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kamada and Enlivex is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Enlivex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlivex Therapeutics and Kamada 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 Kamada are associated (or correlated) with Enlivex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlivex Therapeutics has no effect on the direction of Kamada i.e., Kamada and Enlivex Therapeutics go up and down completely randomly.
Pair Corralation between Kamada and Enlivex Therapeutics
Assuming the 90 days trading horizon Kamada is expected to generate 0.76 times more return on investment than Enlivex Therapeutics. However, Kamada is 1.32 times less risky than Enlivex Therapeutics. It trades about 0.45 of its potential returns per unit of risk. Enlivex Therapeutics is currently generating about -0.1 per unit of risk. If you would invest 221,500 in Kamada on October 21, 2024 and sell it today you would earn a total of 39,000 from holding Kamada or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamada vs. Enlivex Therapeutics
Performance |
| Timeline |
| Kamada |
| Enlivex Therapeutics |
Kamada and Enlivex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Enlivex Therapeutics
The main advantage of trading using opposite Kamada and Enlivex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Enlivex 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 Enlivex Therapeutics will offset losses from the drop in Enlivex Therapeutics' long position.| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
| Enlivex Therapeutics vs. Lineage Cell Therapeutics | Enlivex Therapeutics vs. Compugen | Enlivex Therapeutics vs. Purple Biotech | Enlivex Therapeutics vs. BioLine RX |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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