Correlation Between Kiromic Biopharma and Sohm
Can any of the company-specific risk be diversified away by investing in both Kiromic Biopharma and Sohm 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 Kiromic Biopharma and Sohm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiromic Biopharma and Sohm Inc, you can compare the effects of market volatilities on Kiromic Biopharma and Sohm 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 Kiromic Biopharma with a short position of Sohm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiromic Biopharma and Sohm.
Diversification Opportunities for Kiromic Biopharma and Sohm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kiromic and Sohm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kiromic Biopharma and Sohm Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sohm Inc and Kiromic Biopharma 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 Kiromic Biopharma are associated (or correlated) with Sohm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sohm Inc has no effect on the direction of Kiromic Biopharma i.e., Kiromic Biopharma and Sohm go up and down completely randomly.
Pair Corralation between Kiromic Biopharma and Sohm
Given the investment horizon of 90 days Kiromic Biopharma is expected to generate 1.21 times more return on investment than Sohm. However, Kiromic Biopharma is 1.21 times more volatile than Sohm Inc. It trades about -0.01 of its potential returns per unit of risk. Sohm Inc is currently generating about -0.09 per unit of risk. If you would invest 690.00 in Kiromic Biopharma on August 29, 2024 and sell it today you would lose (422.00) from holding Kiromic Biopharma or give up 61.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 27.56% |
| Values | Daily Returns |
Kiromic Biopharma vs. Sohm Inc
Performance |
| Timeline |
| Kiromic Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sohm Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kiromic Biopharma and Sohm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiromic Biopharma and Sohm
The main advantage of trading using opposite Kiromic Biopharma and Sohm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiromic Biopharma position performs unexpectedly, Sohm 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 Sohm will offset losses from the drop in Sohm's long position.| Kiromic Biopharma vs. Quoin Pharmaceuticals Ltd | Kiromic Biopharma vs. Allarity Therapeutics | Kiromic Biopharma vs. Virax Biolabs Group | Kiromic Biopharma vs. Biodexa Pharmaceticals |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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