Correlation Between Kamada and Evogene
Can any of the company-specific risk be diversified away by investing in both Kamada and Evogene 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 Evogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Evogene, you can compare the effects of market volatilities on Kamada and Evogene 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 Evogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Evogene.
Diversification Opportunities for Kamada and Evogene
Good diversification
The 3 months correlation between Kamada and Evogene is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Evogene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evogene 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 Evogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evogene has no effect on the direction of Kamada i.e., Kamada and Evogene go up and down completely randomly.
Pair Corralation between Kamada and Evogene
Assuming the 90 days trading horizon Kamada is expected to generate 1.57 times more return on investment than Evogene. However, Kamada is 1.57 times more volatile than Evogene. It trades about 0.07 of its potential returns per unit of risk. Evogene is currently generating about -0.04 per unit of risk. If you would invest 243,500 in Kamada on December 1, 2024 and sell it today you would earn a total of 10,900 from holding Kamada or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Kamada vs. Evogene
Performance |
| Timeline |
| Kamada |
| Evogene |
Kamada and Evogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Evogene
The main advantage of trading using opposite Kamada and Evogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Evogene 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 Evogene will offset losses from the drop in Evogene's long position.| Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
| Evogene vs. Arcus Biosciences | Evogene vs. Fate Therapeutics | Evogene vs. Pluri Inc | Evogene vs. Lexaria Bioscience Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |