Correlation Between Kodiak Sciences and Gracell Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Kodiak Sciences and Gracell Biotechnologies 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 Gracell Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kodiak Sciences and Gracell Biotechnologies, you can compare the effects of market volatilities on Kodiak Sciences and Gracell Biotechnologies 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 Gracell Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Sciences and Gracell Biotechnologies.
Diversification Opportunities for Kodiak Sciences and Gracell Biotechnologies
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kodiak and Gracell is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Sciences and Gracell Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gracell Biotechnologies 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 Gracell Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gracell Biotechnologies has no effect on the direction of Kodiak Sciences i.e., Kodiak Sciences and Gracell Biotechnologies go up and down completely randomly.
Pair Corralation between Kodiak Sciences and Gracell Biotechnologies
If you would invest 401.00 in Kodiak Sciences on August 28, 2024 and sell it today you would earn a total of 242.00 from holding Kodiak Sciences or generate 60.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.48% |
| Values | Daily Returns |
Kodiak Sciences vs. Gracell Biotechnologies
Performance |
| Timeline |
| Kodiak Sciences |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kodiak Sciences and Gracell Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Sciences and Gracell Biotechnologies
The main advantage of trading using opposite Kodiak Sciences and Gracell Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Sciences position performs unexpectedly, Gracell Biotechnologies 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 Gracell Biotechnologies will offset losses from the drop in Gracell Biotechnologies' long position.| Kodiak Sciences vs. Reviva Pharmaceuticals Holdings | Kodiak Sciences vs. Eyenovia | Kodiak Sciences vs. Cognition Therapeutics | Kodiak Sciences vs. Transcode Therapeutics |
| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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