Correlation Between Scpharmaceuticals and Kineta
Can any of the company-specific risk be diversified away by investing in both Scpharmaceuticals 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 Scpharmaceuticals and Kineta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scpharmaceuticals and Kineta Inc, you can compare the effects of market volatilities on Scpharmaceuticals 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 Scpharmaceuticals with a short position of Kineta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scpharmaceuticals and Kineta.
Diversification Opportunities for Scpharmaceuticals and Kineta
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scpharmaceuticals and Kineta is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Scpharmaceuticals and Kineta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kineta Inc and Scpharmaceuticals 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 Scpharmaceuticals 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 Scpharmaceuticals i.e., Scpharmaceuticals and Kineta go up and down completely randomly.
Pair Corralation between Scpharmaceuticals and Kineta
Given the investment horizon of 90 days Scpharmaceuticals is expected to generate 0.46 times more return on investment than Kineta. However, Scpharmaceuticals is 2.19 times less risky than Kineta. It trades about -0.03 of its potential returns per unit of risk. Kineta Inc is currently generating about -0.03 per unit of risk. If you would invest 633.00 in Scpharmaceuticals on August 29, 2024 and sell it today you would lose (259.00) from holding Scpharmaceuticals or give up 40.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.63% |
| Values | Daily Returns |
Scpharmaceuticals vs. Kineta Inc
Performance |
| Timeline |
| Scpharmaceuticals |
| Kineta Inc |
Scpharmaceuticals and Kineta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scpharmaceuticals and Kineta
The main advantage of trading using opposite Scpharmaceuticals and Kineta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scpharmaceuticals 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.| Scpharmaceuticals vs. Milestone Pharmaceuticals | Scpharmaceuticals vs. Oncolytics Biotech | Scpharmaceuticals vs. Seres Therapeutics | Scpharmaceuticals vs. DiaMedica Therapeutics |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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