Correlation Between Kamada and Athenex
Can any of the company-specific risk be diversified away by investing in both Kamada and Athenex 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 Athenex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Athenex, you can compare the effects of market volatilities on Kamada and Athenex 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 Athenex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Athenex.
Diversification Opportunities for Kamada and Athenex
Very good diversification
The 3 months correlation between Kamada and Athenex is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex 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 Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of Kamada i.e., Kamada and Athenex go up and down completely randomly.
Pair Corralation between Kamada and Athenex
Given the investment horizon of 90 days Kamada is expected to generate 0.16 times more return on investment than Athenex. However, Kamada is 6.07 times less risky than Athenex. It trades about 0.03 of its potential returns per unit of risk. Athenex is currently generating about -0.16 per unit of risk. If you would invest 508.00 in Kamada on September 4, 2024 and sell it today you would earn a total of 91.00 from holding Kamada or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.79% |
| Values | Daily Returns |
Kamada vs. Athenex
Performance |
| Timeline |
| Kamada |
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kamada and Athenex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Athenex
The main advantage of trading using opposite Kamada and Athenex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Athenex 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 Athenex will offset losses from the drop in Athenex's long position.| Kamada vs. Lifecore Biomedical | Kamada vs. Shuttle Pharmaceuticals | Kamada vs. Cumberland Pharmaceuticals | Kamada vs. Ironwood Pharmaceuticals |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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