Correlation Between Mesoblast and Kiromic Biopharma
Can any of the company-specific risk be diversified away by investing in both Mesoblast and Kiromic Biopharma 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 Mesoblast and Kiromic Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesoblast and Kiromic Biopharma, you can compare the effects of market volatilities on Mesoblast and Kiromic Biopharma 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 Mesoblast with a short position of Kiromic Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesoblast and Kiromic Biopharma.
Diversification Opportunities for Mesoblast and Kiromic Biopharma
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mesoblast and Kiromic is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mesoblast and Kiromic Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiromic Biopharma and Mesoblast 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 Mesoblast are associated (or correlated) with Kiromic Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiromic Biopharma has no effect on the direction of Mesoblast i.e., Mesoblast and Kiromic Biopharma go up and down completely randomly.
Pair Corralation between Mesoblast and Kiromic Biopharma
Given the investment horizon of 90 days Mesoblast is expected to generate 0.77 times more return on investment than Kiromic Biopharma. However, Mesoblast is 1.3 times less risky than Kiromic Biopharma. It trades about 0.07 of its potential returns per unit of risk. Kiromic Biopharma is currently generating about -0.01 per unit of risk. If you would invest 654.00 in Mesoblast on October 9, 2024 and sell it today you would earn a total of 1,242 from holding Mesoblast or generate 189.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 26.48% |
| Values | Daily Returns |
Mesoblast vs. Kiromic Biopharma
Performance |
| Timeline |
| Mesoblast |
| Kiromic Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mesoblast and Kiromic Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesoblast and Kiromic Biopharma
The main advantage of trading using opposite Mesoblast and Kiromic Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesoblast position performs unexpectedly, Kiromic Biopharma 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 Kiromic Biopharma will offset losses from the drop in Kiromic Biopharma's long position.| Mesoblast vs. Aditxt Inc | Mesoblast vs. Lipocine | Mesoblast vs. Connect Biopharma Holdings | Mesoblast vs. Acumen Pharmaceuticals |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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