Correlation Between Phibro Animal and Kamada
Can any of the company-specific risk be diversified away by investing in both Phibro Animal 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 Phibro Animal and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phibro Animal Health and Kamada, you can compare the effects of market volatilities on Phibro Animal 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 Phibro Animal with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phibro Animal and Kamada.
Diversification Opportunities for Phibro Animal and Kamada
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Phibro and Kamada is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Phibro Animal Health and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Phibro Animal 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 Phibro Animal Health 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 Phibro Animal i.e., Phibro Animal and Kamada go up and down completely randomly.
Pair Corralation between Phibro Animal and Kamada
Given the investment horizon of 90 days Phibro Animal is expected to generate 2.24 times less return on investment than Kamada. In addition to that, Phibro Animal is 1.27 times more volatile than Kamada. It trades about 0.06 of its total potential returns per unit of risk. Kamada is currently generating about 0.17 per unit of volatility. If you would invest 547.00 in Kamada on August 28, 2024 and sell it today you would earn a total of 33.00 from holding Kamada or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phibro Animal Health vs. Kamada
Performance |
| Timeline |
| Phibro Animal Health |
| Kamada |
Phibro Animal and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phibro Animal and Kamada
The main advantage of trading using opposite Phibro Animal and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phibro Animal 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.| Phibro Animal vs. Pacira BioSciences, | Phibro Animal vs. Dr Reddys Laboratories | Phibro Animal vs. Collegium Pharmaceutical | Phibro Animal vs. ANI Pharmaceuticals |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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