Correlation Between Kodiak Sciences and Abeona Therapeutics
Can any of the company-specific risk be diversified away by investing in both Kodiak Sciences and Abeona 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 Kodiak Sciences and Abeona Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kodiak Sciences and Abeona Therapeutics, you can compare the effects of market volatilities on Kodiak Sciences and Abeona 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 Kodiak Sciences with a short position of Abeona Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Sciences and Abeona Therapeutics.
Diversification Opportunities for Kodiak Sciences and Abeona Therapeutics
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kodiak and Abeona is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Sciences and Abeona Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abeona Therapeutics and Kodiak Sciences 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 Kodiak Sciences are associated (or correlated) with Abeona Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abeona Therapeutics has no effect on the direction of Kodiak Sciences i.e., Kodiak Sciences and Abeona Therapeutics go up and down completely randomly.
Pair Corralation between Kodiak Sciences and Abeona Therapeutics
Considering the 90-day investment horizon Kodiak Sciences is expected to generate 1.55 times more return on investment than Abeona Therapeutics. However, Kodiak Sciences is 1.55 times more volatile than Abeona Therapeutics. It trades about 0.14 of its potential returns per unit of risk. Abeona Therapeutics is currently generating about 0.1 per unit of risk. If you would invest 324.00 in Kodiak Sciences on September 1, 2024 and sell it today you would earn a total of 343.00 from holding Kodiak Sciences or generate 105.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kodiak Sciences vs. Abeona Therapeutics
Performance |
| Timeline |
| Kodiak Sciences |
| Abeona Therapeutics |
Kodiak Sciences and Abeona Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Sciences and Abeona Therapeutics
The main advantage of trading using opposite Kodiak Sciences and Abeona Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Sciences position performs unexpectedly, Abeona 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 Abeona Therapeutics will offset losses from the drop in Abeona Therapeutics' long position.| Kodiak Sciences vs. Reviva Pharmaceuticals Holdings | Kodiak Sciences vs. Eyenovia | Kodiak Sciences vs. Cognition Therapeutics | Kodiak Sciences vs. Transcode Therapeutics |
| Abeona Therapeutics vs. Tff Pharmaceuticals | Abeona Therapeutics vs. Eliem Therapeutics | Abeona Therapeutics vs. Inhibrx | Abeona Therapeutics vs. Enliven 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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