Correlation Between Kamada and Lucy Scientific
Can any of the company-specific risk be diversified away by investing in both Kamada and Lucy Scientific 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 Lucy Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Lucy Scientific Discovery, you can compare the effects of market volatilities on Kamada and Lucy Scientific 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 Lucy Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Lucy Scientific.
Diversification Opportunities for Kamada and Lucy Scientific
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kamada and Lucy is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Lucy Scientific Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucy Scientific Discovery 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 Lucy Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucy Scientific Discovery has no effect on the direction of Kamada i.e., Kamada and Lucy Scientific go up and down completely randomly.
Pair Corralation between Kamada and Lucy Scientific
If you would invest 633.00 in Kamada on November 2, 2024 and sell it today you would earn a total of 38.00 from holding Kamada or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Kamada vs. Lucy Scientific Discovery
Performance |
| Timeline |
| Kamada |
| Lucy Scientific Discovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kamada and Lucy Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Lucy Scientific
The main advantage of trading using opposite Kamada and Lucy Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Lucy Scientific 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 Lucy Scientific will offset losses from the drop in Lucy Scientific's long position.| Kamada vs. Lifecore Biomedical | Kamada vs. Shuttle Pharmaceuticals | Kamada vs. Cumberland Pharmaceuticals | Kamada vs. Ironwood Pharmaceuticals |
| Lucy Scientific vs. Shuttle Pharmaceuticals | Lucy Scientific vs. Lifecore Biomedical | Lucy Scientific vs. Journey Medical Corp | Lucy Scientific vs. Akanda 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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