Correlation Between NYSE Composite and Kamada
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kamada 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 NYSE Composite and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kamada, you can compare the effects of market volatilities on NYSE Composite and Kamada 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 NYSE Composite with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kamada.
Diversification Opportunities for NYSE Composite and Kamada
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Kamada is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and NYSE Composite 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 NYSE Composite are associated (or correlated) with Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kamada go up and down completely randomly.
Pair Corralation between NYSE Composite and Kamada
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.49 times less return on investment than Kamada. But when comparing it to its historical volatility, NYSE Composite is 3.62 times less risky than Kamada. It trades about 0.08 of its potential returns per unit of risk. Kamada is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Kamada on August 28, 2024 and sell it today you would earn a total of 130.00 from holding Kamada or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Kamada
Performance |
| Timeline |
NYSE Composite and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kamada
Pair trading matchups for Kamada
Pair Trading with NYSE Composite and Kamada
The main advantage of trading using opposite NYSE Composite and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| Kamada vs. Lifecore Biomedical | Kamada vs. Shuttle Pharmaceuticals | Kamada vs. Cumberland Pharmaceuticals | Kamada vs. Ironwood 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 Stocks Directory module to find actively traded stocks across global markets.
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