Correlation Between Kodiak Sciences and KIN
Can any of the company-specific risk be diversified away by investing in both Kodiak Sciences and KIN 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 KIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kodiak Sciences and KIN, you can compare the effects of market volatilities on Kodiak Sciences and KIN 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 KIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kodiak Sciences and KIN.
Diversification Opportunities for Kodiak Sciences and KIN
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kodiak and KIN is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kodiak Sciences and KIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIN 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 KIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIN has no effect on the direction of Kodiak Sciences i.e., Kodiak Sciences and KIN go up and down completely randomly.
Pair Corralation between Kodiak Sciences and KIN
Considering the 90-day investment horizon Kodiak Sciences is expected to generate 0.73 times more return on investment than KIN. However, Kodiak Sciences is 1.38 times less risky than KIN. It trades about 0.1 of its potential returns per unit of risk. KIN is currently generating about -0.01 per unit of risk. If you would invest 394.00 in Kodiak Sciences on September 3, 2024 and sell it today you would earn a total of 273.00 from holding Kodiak Sciences or generate 69.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.89% |
| Values | Daily Returns |
Kodiak Sciences vs. KIN
Performance |
| Timeline |
| Kodiak Sciences |
| KIN |
Kodiak Sciences and KIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kodiak Sciences and KIN
The main advantage of trading using opposite Kodiak Sciences and KIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kodiak Sciences position performs unexpectedly, KIN 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 KIN will offset losses from the drop in KIN's long position.| Kodiak Sciences vs. Reviva Pharmaceuticals Holdings | Kodiak Sciences vs. Eyenovia | Kodiak Sciences vs. Cognition Therapeutics | Kodiak Sciences vs. Transcode 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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