Correlation Between ProKidney Corp and MAIA Biotechnology
Can any of the company-specific risk be diversified away by investing in both ProKidney Corp and MAIA Biotechnology 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 ProKidney Corp and MAIA Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProKidney Corp and MAIA Biotechnology, you can compare the effects of market volatilities on ProKidney Corp and MAIA Biotechnology 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 ProKidney Corp with a short position of MAIA Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProKidney Corp and MAIA Biotechnology.
Diversification Opportunities for ProKidney Corp and MAIA Biotechnology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProKidney and MAIA is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ProKidney Corp and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology and ProKidney Corp 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 ProKidney Corp are associated (or correlated) with MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of ProKidney Corp i.e., ProKidney Corp and MAIA Biotechnology go up and down completely randomly.
Pair Corralation between ProKidney Corp and MAIA Biotechnology
Given the investment horizon of 90 days ProKidney Corp is expected to generate 1.23 times more return on investment than MAIA Biotechnology. However, ProKidney Corp is 1.23 times more volatile than MAIA Biotechnology. It trades about 0.21 of its potential returns per unit of risk. MAIA Biotechnology is currently generating about -0.15 per unit of risk. If you would invest 155.00 in ProKidney Corp on September 2, 2024 and sell it today you would earn a total of 45.00 from holding ProKidney Corp or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProKidney Corp vs. MAIA Biotechnology
Performance |
| Timeline |
| ProKidney Corp |
| MAIA Biotechnology |
ProKidney Corp and MAIA Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProKidney Corp and MAIA Biotechnology
The main advantage of trading using opposite ProKidney Corp and MAIA Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProKidney Corp position performs unexpectedly, MAIA Biotechnology 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 MAIA Biotechnology will offset losses from the drop in MAIA Biotechnology's long position.| ProKidney Corp vs. Relay Therapeutics | ProKidney Corp vs. Stoke Therapeutics | ProKidney Corp vs. Pliant Therapeutics | ProKidney Corp vs. Black Diamond Therapeutics |
| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar 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 Stocks Directory module to find actively traded stocks across global markets.
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