Correlation Between Nkarta and Immatics Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Nkarta and Immatics Biotechnologies 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 Biotechnologies 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 biotechnologies GmbH, you can compare the effects of market volatilities on Nkarta and Immatics Biotechnologies 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 Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Immatics Biotechnologies.
Diversification Opportunities for Nkarta and Immatics Biotechnologies
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nkarta and Immatics is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies 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 Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of Nkarta i.e., Nkarta and Immatics Biotechnologies go up and down completely randomly.
Pair Corralation between Nkarta and Immatics Biotechnologies
Given the investment horizon of 90 days Nkarta Inc is expected to generate 0.53 times more return on investment than Immatics Biotechnologies. However, Nkarta Inc is 1.88 times less risky than Immatics Biotechnologies. It trades about -0.29 of its potential returns per unit of risk. immatics biotechnologies GmbH is currently generating about -0.63 per unit of risk. If you would invest 346.00 in Nkarta Inc on August 29, 2024 and sell it today you would lose (85.00) from holding Nkarta Inc or give up 24.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Nkarta Inc vs. immatics biotechnologies GmbH
Performance |
| Timeline |
| Nkarta Inc |
| Immatics Biotechnologies |
Nkarta and Immatics Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Immatics Biotechnologies
The main advantage of trading using opposite Nkarta and Immatics Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Immatics Biotechnologies 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 Biotechnologies will offset losses from the drop in Immatics Biotechnologies' long position.| Nkarta vs. Eliem Therapeutics | Nkarta vs. Scpharmaceuticals | Nkarta vs. Milestone Pharmaceuticals | Nkarta vs. Seres Therapeutics |
| Immatics Biotechnologies vs. Eliem Therapeutics | Immatics Biotechnologies vs. Scpharmaceuticals | Immatics Biotechnologies vs. Milestone Pharmaceuticals | Immatics Biotechnologies vs. Seres 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |