Correlation Between Nkarta and MAIA Biotechnology
Can any of the company-specific risk be diversified away by investing in both Nkarta and MAIA Biotechnology 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 MAIA Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and MAIA Biotechnology, you can compare the effects of market volatilities on Nkarta and MAIA Biotechnology 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 MAIA Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and MAIA Biotechnology.
Diversification Opportunities for Nkarta and MAIA Biotechnology
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nkarta and MAIA is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology 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 MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of Nkarta i.e., Nkarta and MAIA Biotechnology go up and down completely randomly.
Pair Corralation between Nkarta and MAIA Biotechnology
Given the investment horizon of 90 days Nkarta Inc is expected to generate 1.41 times more return on investment than MAIA Biotechnology. However, Nkarta is 1.41 times more volatile than MAIA Biotechnology. It trades about 0.02 of its potential returns per unit of risk. MAIA Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 518.00 in Nkarta Inc on November 4, 2024 and sell it today you would lose (284.00) from holding Nkarta Inc or give up 54.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. MAIA Biotechnology
Performance |
| Timeline |
| Nkarta Inc |
| MAIA Biotechnology |
Nkarta and MAIA Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and MAIA Biotechnology
The main advantage of trading using opposite Nkarta and MAIA Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, MAIA Biotechnology 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 MAIA Biotechnology will offset losses from the drop in MAIA Biotechnology's long position.| Nkarta vs. Monte Rosa Therapeutics | Nkarta vs. Lyell Immunopharma | Nkarta vs. Generation Bio Co | Nkarta vs. Sana Biotechnology |
| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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