Correlation Between Nkarta and MeiraGTx Holdings
Can any of the company-specific risk be diversified away by investing in both Nkarta and MeiraGTx Holdings 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 MeiraGTx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and MeiraGTx Holdings PLC, you can compare the effects of market volatilities on Nkarta and MeiraGTx Holdings 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 MeiraGTx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and MeiraGTx Holdings.
Diversification Opportunities for Nkarta and MeiraGTx Holdings
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nkarta and MeiraGTx is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and MeiraGTx Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeiraGTx Holdings PLC 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 MeiraGTx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeiraGTx Holdings PLC has no effect on the direction of Nkarta i.e., Nkarta and MeiraGTx Holdings go up and down completely randomly.
Pair Corralation between Nkarta and MeiraGTx Holdings
Given the investment horizon of 90 days Nkarta Inc is expected to generate 1.86 times more return on investment than MeiraGTx Holdings. However, Nkarta is 1.86 times more volatile than MeiraGTx Holdings PLC. It trades about 0.03 of its potential returns per unit of risk. MeiraGTx Holdings PLC is currently generating about 0.03 per unit of risk. If you would invest 272.00 in Nkarta Inc on August 27, 2024 and sell it today you would lose (27.00) from holding Nkarta Inc or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. MeiraGTx Holdings PLC
Performance |
| Timeline |
| Nkarta Inc |
| MeiraGTx Holdings PLC |
Nkarta and MeiraGTx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and MeiraGTx Holdings
The main advantage of trading using opposite Nkarta and MeiraGTx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, MeiraGTx Holdings 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 MeiraGTx Holdings will offset losses from the drop in MeiraGTx Holdings' long position.| Nkarta vs. Eliem Therapeutics | Nkarta vs. HCW Biologics | Nkarta vs. Scpharmaceuticals | Nkarta vs. Milestone Pharmaceuticals |
| MeiraGTx Holdings vs. Ideaya Biosciences | MeiraGTx Holdings vs. AnaptysBio | MeiraGTx Holdings vs. Keros Therapeutics | MeiraGTx Holdings vs. Uniqure NV |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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