Correlation Between Kane Biotech and Kineta
Can any of the company-specific risk be diversified away by investing in both Kane Biotech and Kineta 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 Kane Biotech and Kineta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kane Biotech and Kineta Inc, you can compare the effects of market volatilities on Kane Biotech and Kineta 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 Kane Biotech with a short position of Kineta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kane Biotech and Kineta.
Diversification Opportunities for Kane Biotech and Kineta
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kane and Kineta is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kane Biotech and Kineta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kineta Inc and Kane Biotech 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 Kane Biotech are associated (or correlated) with Kineta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kineta Inc has no effect on the direction of Kane Biotech i.e., Kane Biotech and Kineta go up and down completely randomly.
Pair Corralation between Kane Biotech and Kineta
If you would invest 7.67 in Kane Biotech on October 26, 2024 and sell it today you would earn a total of 0.33 from holding Kane Biotech or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.44% |
| Values | Daily Returns |
Kane Biotech vs. Kineta Inc
Performance |
| Timeline |
| Kane Biotech |
| Kineta Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kane Biotech and Kineta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kane Biotech and Kineta
The main advantage of trading using opposite Kane Biotech and Kineta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kane Biotech position performs unexpectedly, Kineta 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 Kineta will offset losses from the drop in Kineta's long position.| Kane Biotech vs. Pharming Group NV | Kane Biotech vs. Health Sciences Gr | Kane Biotech vs. MedMira | Kane Biotech vs. Oxford Cannabinoid Technologies |
| Kineta vs. Rezolute | Kineta vs. XOMA Corporation | Kineta vs. Protagenic Therapeutics | Kineta vs. Tempest Therapeutics |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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