Correlation Between Nkarta and Genfit
Can any of the company-specific risk be diversified away by investing in both Nkarta and Genfit 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 Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Genfit, you can compare the effects of market volatilities on Nkarta and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Genfit.
Diversification Opportunities for Nkarta and Genfit
Very good diversification
The 3 months correlation between Nkarta and Genfit is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Nkarta i.e., Nkarta and Genfit go up and down completely randomly.
Pair Corralation between Nkarta and Genfit
Given the investment horizon of 90 days Nkarta Inc is expected to generate 2.37 times more return on investment than Genfit. However, Nkarta is 2.37 times more volatile than Genfit. It trades about 0.04 of its potential returns per unit of risk. Genfit is currently generating about 0.03 per unit of risk. If you would invest 211.00 in Nkarta Inc on August 28, 2024 and sell it today you would earn a total of 48.00 from holding Nkarta Inc or generate 22.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Genfit
Performance |
| Timeline |
| Nkarta Inc |
| Genfit |
Nkarta and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Genfit
The main advantage of trading using opposite Nkarta and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Nkarta vs. Eliem Therapeutics | Nkarta vs. Scpharmaceuticals | Nkarta vs. Milestone Pharmaceuticals | Nkarta vs. Seres Therapeutics |
| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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