Correlation Between Lucy Scientific and Kamada
Can any of the company-specific risk be diversified away by investing in both Lucy Scientific and Kamada 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 Lucy Scientific and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lucy Scientific Discovery and Kamada, you can compare the effects of market volatilities on Lucy Scientific and Kamada 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 Lucy Scientific with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucy Scientific and Kamada.
Diversification Opportunities for Lucy Scientific and Kamada
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lucy and Kamada is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lucy Scientific Discovery and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Lucy Scientific 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 Lucy Scientific Discovery are associated (or correlated) with Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Lucy Scientific i.e., Lucy Scientific and Kamada go up and down completely randomly.
Pair Corralation between Lucy Scientific and Kamada
If you would invest 547.00 in Kamada on August 27, 2024 and sell it today you would earn a total of 33.00 from holding Kamada or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lucy Scientific Discovery vs. Kamada
Performance |
| Timeline |
| Lucy Scientific Discovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kamada |
Lucy Scientific and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lucy Scientific and Kamada
The main advantage of trading using opposite Lucy Scientific and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucy Scientific position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.| Lucy Scientific vs. Shuttle Pharmaceuticals | Lucy Scientific vs. Lifecore Biomedical | Lucy Scientific vs. Journey Medical Corp | Lucy Scientific vs. Akanda Corp |
| Kamada vs. Lifecore Biomedical | Kamada vs. Shuttle Pharmaceuticals | Kamada vs. Cumberland Pharmaceuticals | Kamada vs. Ironwood Pharmaceuticals |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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