Correlation Between Nkarta and BriaCell Therapeutics
Can any of the company-specific risk be diversified away by investing in both Nkarta and BriaCell Therapeutics 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 Nkarta and BriaCell Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and BriaCell Therapeutics Corp, you can compare the effects of market volatilities on Nkarta and BriaCell Therapeutics 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 Nkarta with a short position of BriaCell Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and BriaCell Therapeutics.
Diversification Opportunities for Nkarta and BriaCell Therapeutics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nkarta and BriaCell is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and BriaCell Therapeutics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BriaCell Therapeutics and Nkarta 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 Nkarta Inc are associated (or correlated) with BriaCell Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BriaCell Therapeutics has no effect on the direction of Nkarta i.e., Nkarta and BriaCell Therapeutics go up and down completely randomly.
Pair Corralation between Nkarta and BriaCell Therapeutics
Given the investment horizon of 90 days Nkarta Inc is expected to under-perform the BriaCell Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Nkarta Inc is 1.93 times less risky than BriaCell Therapeutics. The stock trades about -0.33 of its potential returns per unit of risk. The BriaCell Therapeutics Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 33.00 in BriaCell Therapeutics Corp on August 26, 2024 and sell it today you would earn a total of 1.00 from holding BriaCell Therapeutics Corp or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nkarta Inc vs. BriaCell Therapeutics Corp
Performance |
| Timeline |
| Nkarta Inc |
| BriaCell Therapeutics |
Nkarta and BriaCell Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and BriaCell Therapeutics
The main advantage of trading using opposite Nkarta and BriaCell Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, BriaCell Therapeutics 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 BriaCell Therapeutics will offset losses from the drop in BriaCell Therapeutics' long position.| Nkarta vs. Eliem Therapeutics | Nkarta vs. HCW Biologics | Nkarta vs. Scpharmaceuticals | Nkarta vs. Milestone Pharmaceuticals |
| BriaCell Therapeutics vs. Briacell Therapeutics Corp | BriaCell Therapeutics vs. GeoVax Labs | BriaCell Therapeutics vs. immatics biotechnologies GmbH | BriaCell Therapeutics vs. CannBioRx Life Sciences |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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