Correlation Between NYSE Composite and Kiniksa Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kiniksa Pharmaceuticals 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 Kiniksa Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kiniksa Pharmaceuticals, you can compare the effects of market volatilities on NYSE Composite and Kiniksa Pharmaceuticals 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 Kiniksa Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kiniksa Pharmaceuticals.
Diversification Opportunities for NYSE Composite and Kiniksa Pharmaceuticals
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Kiniksa is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kiniksa Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiniksa Pharmaceuticals 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 Kiniksa Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiniksa Pharmaceuticals has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kiniksa Pharmaceuticals go up and down completely randomly.
Pair Corralation between NYSE Composite and Kiniksa Pharmaceuticals
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.26 times more return on investment than Kiniksa Pharmaceuticals. However, NYSE Composite is 3.91 times less risky than Kiniksa Pharmaceuticals. It trades about 0.18 of its potential returns per unit of risk. Kiniksa Pharmaceuticals is currently generating about -0.18 per unit of risk. If you would invest 1,920,711 in NYSE Composite on October 23, 2024 and sell it today you would earn a total of 40,026 from holding NYSE Composite or generate 2.08% 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. Kiniksa Pharmaceuticals
Performance |
| Timeline |
NYSE Composite and Kiniksa Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kiniksa Pharmaceuticals
Pair trading matchups for Kiniksa Pharmaceuticals
Pair Trading with NYSE Composite and Kiniksa Pharmaceuticals
The main advantage of trading using opposite NYSE Composite and Kiniksa Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kiniksa Pharmaceuticals 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 Kiniksa Pharmaceuticals will offset losses from the drop in Kiniksa Pharmaceuticals' long position.| NYSE Composite vs. IPG Photonics | NYSE Composite vs. Summit Materials | NYSE Composite vs. NetSol Technologies | NYSE Composite vs. Bill Com Holdings |
| Kiniksa Pharmaceuticals vs. Nuvalent | Kiniksa Pharmaceuticals vs. Ventyx Biosciences | Kiniksa Pharmaceuticals vs. Arcellx | Kiniksa Pharmaceuticals vs. Cullinan Oncology LLC |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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