Correlation Between Nkarta and Elevation Oncology
Can any of the company-specific risk be diversified away by investing in both Nkarta and Elevation Oncology 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 Elevation Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Elevation Oncology, you can compare the effects of market volatilities on Nkarta and Elevation Oncology 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 Elevation Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Elevation Oncology.
Diversification Opportunities for Nkarta and Elevation Oncology
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nkarta and Elevation is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Elevation Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Oncology 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 Elevation Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Oncology has no effect on the direction of Nkarta i.e., Nkarta and Elevation Oncology go up and down completely randomly.
Pair Corralation between Nkarta and Elevation Oncology
Given the investment horizon of 90 days Nkarta Inc is expected to under-perform the Elevation Oncology. But the stock apears to be less risky and, when comparing its historical volatility, Nkarta Inc is 1.23 times less risky than Elevation Oncology. The stock trades about -0.09 of its potential returns per unit of risk. The Elevation Oncology is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 300.00 in Elevation Oncology on November 5, 2024 and sell it today you would lose (236.00) from holding Elevation Oncology or give up 78.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Elevation Oncology
Performance |
| Timeline |
| Nkarta Inc |
| Elevation Oncology |
Nkarta and Elevation Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Elevation Oncology
The main advantage of trading using opposite Nkarta and Elevation Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Elevation Oncology 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 Elevation Oncology will offset losses from the drop in Elevation Oncology's long position.| Nkarta vs. Monte Rosa Therapeutics | Nkarta vs. Lyell Immunopharma | Nkarta vs. Generation Bio Co | Nkarta vs. Sana Biotechnology |
| Elevation Oncology vs. Ocean Biomedical | Elevation Oncology vs. Zura Bio Limited | Elevation Oncology vs. Enveric Biosciences | Elevation Oncology vs. Hepion 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |