Correlation Between NextCure and Kiromic Biopharma
Can any of the company-specific risk be diversified away by investing in both NextCure and Kiromic Biopharma 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 NextCure and Kiromic Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextCure and Kiromic Biopharma, you can compare the effects of market volatilities on NextCure and Kiromic Biopharma 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 NextCure with a short position of Kiromic Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextCure and Kiromic Biopharma.
Diversification Opportunities for NextCure and Kiromic Biopharma
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NextCure and Kiromic is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding NextCure and Kiromic Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiromic Biopharma and NextCure 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 NextCure are associated (or correlated) with Kiromic Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiromic Biopharma has no effect on the direction of NextCure i.e., NextCure and Kiromic Biopharma go up and down completely randomly.
Pair Corralation between NextCure and Kiromic Biopharma
If you would invest 268.00 in Kiromic Biopharma on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Kiromic Biopharma or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
NextCure vs. Kiromic Biopharma
Performance |
| Timeline |
| NextCure |
| Kiromic Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NextCure and Kiromic Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextCure and Kiromic Biopharma
The main advantage of trading using opposite NextCure and Kiromic Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextCure position performs unexpectedly, Kiromic Biopharma 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 Kiromic Biopharma will offset losses from the drop in Kiromic Biopharma's long position.| NextCure vs. DiaMedica Therapeutics | NextCure vs. Lyra Therapeutics | NextCure vs. Centessa Pharmaceuticals PLC |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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