Correlation Between Nkarta and Immatics
Can any of the company-specific risk be diversified away by investing in both Nkarta and Immatics 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 Immatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Immatics NV, you can compare the effects of market volatilities on Nkarta and Immatics 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 Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Immatics.
Diversification Opportunities for Nkarta and Immatics
Almost no diversification
The 3 months correlation between Nkarta and Immatics is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV 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 Immatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics NV has no effect on the direction of Nkarta i.e., Nkarta and Immatics go up and down completely randomly.
Pair Corralation between Nkarta and Immatics
Given the investment horizon of 90 days Nkarta Inc is expected to generate 2.43 times more return on investment than Immatics. However, Nkarta is 2.43 times more volatile than Immatics NV. It trades about -0.07 of its potential returns per unit of risk. Immatics NV is currently generating about -0.31 per unit of risk. If you would invest 333.00 in Nkarta Inc on August 31, 2024 and sell it today you would lose (34.00) from holding Nkarta Inc or give up 10.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Immatics NV
Performance |
| Timeline |
| Nkarta Inc |
| Immatics NV |
Nkarta and Immatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Immatics
The main advantage of trading using opposite Nkarta and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Immatics 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 Immatics will offset losses from the drop in Immatics' long position.| Nkarta vs. Monte Rosa Therapeutics | Nkarta vs. Lyell Immunopharma | Nkarta vs. Generation Bio Co | Nkarta vs. Sana Biotechnology |
| Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. Bioatla | Immatics vs. Aerovate 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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