Correlation Between Silver Spike and Kamada
Can any of the company-specific risk be diversified away by investing in both Silver Spike 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 Silver Spike and Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Spike Investment and Kamada, you can compare the effects of market volatilities on Silver Spike 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 Silver Spike with a short position of Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Spike and Kamada.
Diversification Opportunities for Silver Spike and Kamada
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silver and Kamada is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Silver Spike Investment and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada and Silver Spike 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 Silver Spike Investment 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 Silver Spike i.e., Silver Spike and Kamada go up and down completely randomly.
Pair Corralation between Silver Spike and Kamada
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 | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Silver Spike Investment vs. Kamada
Performance |
| Timeline |
| Silver Spike Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Kamada |
Silver Spike and Kamada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Spike and Kamada
The main advantage of trading using opposite Silver Spike and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Spike 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.| Silver Spike vs. Entourage Health Corp | Silver Spike vs. Avicanna | Silver Spike vs. Benchmark Botanics | Silver Spike vs. Speakeasy Cannabis Club |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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