Correlation Between Viking Therapeutics and Kineta
Can any of the company-specific risk be diversified away by investing in both Viking Therapeutics 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 Viking Therapeutics and Kineta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viking Therapeutics and Kineta Inc, you can compare the effects of market volatilities on Viking Therapeutics 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 Viking Therapeutics with a short position of Kineta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viking Therapeutics and Kineta.
Diversification Opportunities for Viking Therapeutics and Kineta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Viking and Kineta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Viking Therapeutics and Kineta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kineta Inc and Viking Therapeutics 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 Viking Therapeutics 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 Viking Therapeutics i.e., Viking Therapeutics and Kineta go up and down completely randomly.
Pair Corralation between Viking Therapeutics and Kineta
If you would invest 1,103 in Viking Therapeutics on November 9, 2024 and sell it today you would earn a total of 2,043 from holding Viking Therapeutics or generate 185.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Viking Therapeutics vs. Kineta Inc
Performance |
| Timeline |
| Viking Therapeutics |
| Kineta Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Viking Therapeutics and Kineta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viking Therapeutics and Kineta
The main advantage of trading using opposite Viking Therapeutics and Kineta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking Therapeutics 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.| Viking Therapeutics vs. Terns Pharmaceuticals | Viking Therapeutics vs. Akero Therapeutics | Viking Therapeutics vs. Madrigal Pharmaceuticals | Viking Therapeutics vs. Sarepta 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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