Correlation Between SAB Biotherapeutics and Kineta
Can any of the company-specific risk be diversified away by investing in both SAB Biotherapeutics and Kineta 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 SAB Biotherapeutics and Kineta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Biotherapeutics and Kineta Inc, you can compare the effects of market volatilities on SAB Biotherapeutics and Kineta 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 SAB Biotherapeutics with a short position of Kineta. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Biotherapeutics and Kineta.
Diversification Opportunities for SAB Biotherapeutics and Kineta
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SAB and Kineta is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Kineta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kineta Inc and SAB 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 SAB Biotherapeutics are associated (or correlated) with Kineta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kineta Inc has no effect on the direction of SAB Biotherapeutics i.e., SAB Biotherapeutics and Kineta go up and down completely randomly.
Pair Corralation between SAB Biotherapeutics and Kineta
If you would invest 303.00 in SAB Biotherapeutics on October 26, 2024 and sell it today you would earn a total of 69.00 from holding SAB Biotherapeutics or generate 22.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 2.56% |
| Values | Daily Returns |
SAB Biotherapeutics vs. Kineta Inc
Performance |
| Timeline |
| SAB Biotherapeutics |
| Kineta Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SAB Biotherapeutics and Kineta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Biotherapeutics and Kineta
The main advantage of trading using opposite SAB Biotherapeutics and Kineta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Biotherapeutics position performs unexpectedly, Kineta 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 Kineta will offset losses from the drop in Kineta's long position.| SAB Biotherapeutics vs. Processa Pharmaceuticals | SAB Biotherapeutics vs. Third Harmonic Bio | SAB Biotherapeutics vs. Cingulate Warrants | SAB Biotherapeutics vs. Anebulo Pharmaceuticals |
| Kineta vs. Rezolute | Kineta vs. XOMA Corporation | Kineta vs. Protagenic Therapeutics | Kineta vs. Tempest 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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