Correlation Between Pasithea Therapeutics and Nkarta
Can any of the company-specific risk be diversified away by investing in both Pasithea Therapeutics and Nkarta 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 Pasithea Therapeutics and Nkarta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pasithea Therapeutics Corp and Nkarta Inc, you can compare the effects of market volatilities on Pasithea Therapeutics and Nkarta 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 Pasithea Therapeutics with a short position of Nkarta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pasithea Therapeutics and Nkarta.
Diversification Opportunities for Pasithea Therapeutics and Nkarta
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pasithea and Nkarta is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Pasithea Therapeutics Corp and Nkarta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nkarta Inc and Pasithea Therapeutics 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 Pasithea Therapeutics Corp are associated (or correlated) with Nkarta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nkarta Inc has no effect on the direction of Pasithea Therapeutics i.e., Pasithea Therapeutics and Nkarta go up and down completely randomly.
Pair Corralation between Pasithea Therapeutics and Nkarta
Given the investment horizon of 90 days Pasithea Therapeutics Corp is expected to under-perform the Nkarta. In addition to that, Pasithea Therapeutics is 2.27 times more volatile than Nkarta Inc. It trades about -0.1 of its total potential returns per unit of risk. Nkarta Inc is currently generating about -0.01 per unit of volatility. If you would invest 239.00 in Nkarta Inc on November 9, 2024 and sell it today you would lose (5.00) from holding Nkarta Inc or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pasithea Therapeutics Corp vs. Nkarta Inc
Performance |
| Timeline |
| Pasithea Therapeutics |
| Nkarta Inc |
Pasithea Therapeutics and Nkarta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pasithea Therapeutics and Nkarta
The main advantage of trading using opposite Pasithea Therapeutics and Nkarta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pasithea Therapeutics position performs unexpectedly, Nkarta 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 Nkarta will offset losses from the drop in Nkarta's long position.| Pasithea Therapeutics vs. Nutriband Warrant | Pasithea Therapeutics vs. MediciNova | Pasithea Therapeutics vs. Virax Biolabs Group | Pasithea Therapeutics vs. Revelation Biosciences |
| Nkarta vs. Monte Rosa Therapeutics | Nkarta vs. Lyell Immunopharma | Nkarta vs. Generation Bio Co | Nkarta vs. Sana Biotechnology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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