Correlation Between Protalix Biotherapeutics and Kodiak Sciences
Can any of the company-specific risk be diversified away by investing in both Protalix Biotherapeutics and Kodiak Sciences 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 Protalix Biotherapeutics and Kodiak Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protalix Biotherapeutics and Kodiak Sciences, you can compare the effects of market volatilities on Protalix Biotherapeutics and Kodiak Sciences 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 Protalix Biotherapeutics with a short position of Kodiak Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protalix Biotherapeutics and Kodiak Sciences.
Diversification Opportunities for Protalix Biotherapeutics and Kodiak Sciences
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Protalix and Kodiak is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Protalix Biotherapeutics and Kodiak Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Sciences and Protalix Biotherapeutics 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 Protalix Biotherapeutics are associated (or correlated) with Kodiak Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Sciences has no effect on the direction of Protalix Biotherapeutics i.e., Protalix Biotherapeutics and Kodiak Sciences go up and down completely randomly.
Pair Corralation between Protalix Biotherapeutics and Kodiak Sciences
Considering the 90-day investment horizon Protalix Biotherapeutics is expected to generate 1.38 times less return on investment than Kodiak Sciences. In addition to that, Protalix Biotherapeutics is 1.5 times more volatile than Kodiak Sciences. It trades about 0.33 of its total potential returns per unit of risk. Kodiak Sciences is currently generating about 0.68 per unit of volatility. If you would invest 380.00 in Kodiak Sciences on September 1, 2024 and sell it today you would earn a total of 287.00 from holding Kodiak Sciences or generate 75.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protalix Biotherapeutics vs. Kodiak Sciences
Performance |
| Timeline |
| Protalix Biotherapeutics |
| Kodiak Sciences |
Protalix Biotherapeutics and Kodiak Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protalix Biotherapeutics and Kodiak Sciences
The main advantage of trading using opposite Protalix Biotherapeutics and Kodiak Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protalix Biotherapeutics position performs unexpectedly, Kodiak Sciences 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 Kodiak Sciences will offset losses from the drop in Kodiak Sciences' long position.| Protalix Biotherapeutics vs. Corvus Pharmaceuticals | Protalix Biotherapeutics vs. Aldeyra | Protalix Biotherapeutics vs. Checkpoint Therapeutics | Protalix Biotherapeutics vs. Cidara Therapeutics |
| Kodiak Sciences vs. Reviva Pharmaceuticals Holdings | Kodiak Sciences vs. Eyenovia | Kodiak Sciences vs. Cognition Therapeutics | Kodiak Sciences vs. Transcode 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance |