Correlation Between Nkarta and Exicure
Can any of the company-specific risk be diversified away by investing in both Nkarta and Exicure 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 Exicure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Exicure, you can compare the effects of market volatilities on Nkarta and Exicure 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 Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Exicure.
Diversification Opportunities for Nkarta and Exicure
Excellent diversification
The 3 months correlation between Nkarta and Exicure is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Nkarta i.e., Nkarta and Exicure go up and down completely randomly.
Pair Corralation between Nkarta and Exicure
Given the investment horizon of 90 days Nkarta Inc is expected to generate 0.37 times more return on investment than Exicure. However, Nkarta Inc is 2.68 times less risky than Exicure. It trades about -0.02 of its potential returns per unit of risk. Exicure is currently generating about -0.28 per unit of risk. If you would invest 250.00 in Nkarta Inc on October 24, 2024 and sell it today you would lose (6.00) from holding Nkarta Inc or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nkarta Inc vs. Exicure
Performance |
| Timeline |
| Nkarta Inc |
| Exicure |
Nkarta and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Exicure
The main advantage of trading using opposite Nkarta and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.| Nkarta vs. Monte Rosa Therapeutics | Nkarta vs. Lyell Immunopharma | Nkarta vs. Generation Bio Co | Nkarta vs. Sana Biotechnology |
| Exicure vs. Ikena Oncology | Exicure vs. HCW Biologics | Exicure vs. RenovoRx | Exicure vs. Tempest 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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