Correlation Between Nkarta and Phibro Animal
Can any of the company-specific risk be diversified away by investing in both Nkarta and Phibro Animal 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 Phibro Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Phibro Animal Health, you can compare the effects of market volatilities on Nkarta and Phibro Animal 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 Phibro Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Phibro Animal.
Diversification Opportunities for Nkarta and Phibro Animal
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nkarta and Phibro is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Phibro Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phibro Animal Health 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 Phibro Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phibro Animal Health has no effect on the direction of Nkarta i.e., Nkarta and Phibro Animal go up and down completely randomly.
Pair Corralation between Nkarta and Phibro Animal
Given the investment horizon of 90 days Nkarta Inc is expected to under-perform the Phibro Animal. In addition to that, Nkarta is 1.77 times more volatile than Phibro Animal Health. It trades about -0.39 of its total potential returns per unit of risk. Phibro Animal Health is currently generating about 0.02 per unit of volatility. If you would invest 2,360 in Phibro Animal Health on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Phibro Animal Health or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Phibro Animal Health
Performance |
| Timeline |
| Nkarta Inc |
| Phibro Animal Health |
Nkarta and Phibro Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Phibro Animal
The main advantage of trading using opposite Nkarta and Phibro Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Phibro Animal 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 Phibro Animal will offset losses from the drop in Phibro Animal's long position.| Nkarta vs. Eliem Therapeutics | Nkarta vs. HCW Biologics | Nkarta vs. Scpharmaceuticals | Nkarta vs. Milestone Pharmaceuticals |
| Phibro Animal vs. Pacira BioSciences, | Phibro Animal vs. Dr Reddys Laboratories | Phibro Animal vs. Collegium Pharmaceutical | Phibro Animal vs. ANI 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |