Correlation Between Nkarta and Marker Therapeutics
Can any of the company-specific risk be diversified away by investing in both Nkarta and Marker Therapeutics 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 Marker Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Marker Therapeutics, you can compare the effects of market volatilities on Nkarta and Marker Therapeutics 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 Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Marker Therapeutics.
Diversification Opportunities for Nkarta and Marker Therapeutics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nkarta and Marker is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics 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 Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of Nkarta i.e., Nkarta and Marker Therapeutics go up and down completely randomly.
Pair Corralation between Nkarta and Marker Therapeutics
Given the investment horizon of 90 days Nkarta Inc is expected to under-perform the Marker Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Nkarta Inc is 1.51 times less risky than Marker Therapeutics. The stock trades about -0.28 of its potential returns per unit of risk. The Marker Therapeutics is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 432.00 in Marker Therapeutics on August 29, 2024 and sell it today you would lose (106.00) from holding Marker Therapeutics or give up 24.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Marker Therapeutics
Performance |
| Timeline |
| Nkarta Inc |
| Marker Therapeutics |
Nkarta and Marker Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Marker Therapeutics
The main advantage of trading using opposite Nkarta and Marker Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Marker Therapeutics 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 Marker Therapeutics will offset losses from the drop in Marker Therapeutics' long position.The idea behind Nkarta Inc and Marker Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Marker Therapeutics vs. Lumos Pharma | Marker Therapeutics vs. Exicure | Marker Therapeutics vs. Protagenic Therapeutics | Marker Therapeutics vs. Pmv Pharmaceuticals |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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