Correlation Between Nkarta and Celldex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Nkarta and Celldex 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 Celldex 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 Celldex Therapeutics, you can compare the effects of market volatilities on Nkarta and Celldex 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 Celldex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Celldex Therapeutics.
Diversification Opportunities for Nkarta and Celldex Therapeutics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nkarta and Celldex is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Celldex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celldex 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 Celldex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celldex Therapeutics has no effect on the direction of Nkarta i.e., Nkarta and Celldex Therapeutics go up and down completely randomly.
Pair Corralation between Nkarta and Celldex Therapeutics
Given the investment horizon of 90 days Nkarta Inc is expected to under-perform the Celldex Therapeutics. In addition to that, Nkarta is 1.66 times more volatile than Celldex Therapeutics. It trades about -0.18 of its total potential returns per unit of risk. Celldex Therapeutics is currently generating about -0.16 per unit of volatility. If you would invest 2,454 in Celldex Therapeutics on November 27, 2024 and sell it today you would lose (208.00) from holding Celldex Therapeutics or give up 8.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Celldex Therapeutics
Performance |
| Timeline |
| Nkarta Inc |
| Celldex Therapeutics |
Nkarta and Celldex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Celldex Therapeutics
The main advantage of trading using opposite Nkarta and Celldex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Celldex 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 Celldex Therapeutics will offset losses from the drop in Celldex Therapeutics' long position.| Nkarta vs. Monte Rosa Therapeutics | Nkarta vs. Lyell Immunopharma | Nkarta vs. Generation Bio Co | Nkarta vs. Sana Biotechnology |
| Celldex Therapeutics vs. Ideaya Biosciences | Celldex Therapeutics vs. AnaptysBio | Celldex Therapeutics vs. MeiraGTx Holdings PLC | Celldex Therapeutics vs. Keros Therapeutics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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