Correlation Between Nkarta and Immunome
Can any of the company-specific risk be diversified away by investing in both Nkarta and Immunome 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 Immunome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Immunome, you can compare the effects of market volatilities on Nkarta and Immunome 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 Immunome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Immunome.
Diversification Opportunities for Nkarta and Immunome
Very poor diversification
The 3 months correlation between Nkarta and Immunome is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Immunome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunome 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 Immunome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunome has no effect on the direction of Nkarta i.e., Nkarta and Immunome go up and down completely randomly.
Pair Corralation between Nkarta and Immunome
Given the investment horizon of 90 days Nkarta is expected to generate 1.89 times less return on investment than Immunome. In addition to that, Nkarta is 1.75 times more volatile than Immunome. It trades about 0.02 of its total potential returns per unit of risk. Immunome is currently generating about 0.07 per unit of volatility. If you would invest 531.00 in Immunome on September 1, 2024 and sell it today you would earn a total of 824.00 from holding Immunome or generate 155.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Immunome
Performance |
| Timeline |
| Nkarta Inc |
| Immunome |
Nkarta and Immunome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Immunome
The main advantage of trading using opposite Nkarta and Immunome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Immunome 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 Immunome will offset losses from the drop in Immunome's long position.| Nkarta vs. Monte Rosa Therapeutics | Nkarta vs. Lyell Immunopharma | Nkarta vs. Generation Bio Co | Nkarta vs. Sana Biotechnology |
| Immunome vs. Anebulo Pharmaceuticals | Immunome vs. Adagene | Immunome vs. Acrivon Therapeutics, Common | Immunome vs. AnaptysBio |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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