Correlation Between Amicus Therapeutics and NantKwest
Can any of the company-specific risk be diversified away by investing in both Amicus Therapeutics and NantKwest 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 Amicus Therapeutics and NantKwest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amicus Therapeutics and NantKwest, you can compare the effects of market volatilities on Amicus Therapeutics and NantKwest 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 Amicus Therapeutics with a short position of NantKwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amicus Therapeutics and NantKwest.
Diversification Opportunities for Amicus Therapeutics and NantKwest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amicus and NantKwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amicus Therapeutics and NantKwest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NantKwest and Amicus 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 Amicus Therapeutics are associated (or correlated) with NantKwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NantKwest has no effect on the direction of Amicus Therapeutics i.e., Amicus Therapeutics and NantKwest go up and down completely randomly.
Pair Corralation between Amicus Therapeutics and NantKwest
If you would invest (100.00) in NantKwest on January 27, 2024 and sell it today you would earn a total of 100.00 from holding NantKwest or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amicus Therapeutics vs. NantKwest
Performance |
| Timeline |
| Amicus Therapeutics |
| NantKwest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amicus Therapeutics and NantKwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amicus Therapeutics and NantKwest
The main advantage of trading using opposite Amicus Therapeutics and NantKwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amicus Therapeutics position performs unexpectedly, NantKwest 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 NantKwest will offset losses from the drop in NantKwest's long position.The idea behind Amicus Therapeutics and NantKwest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| NantKwest vs. Glacier Bancorp | NantKwest vs. Hanover Foods | NantKwest vs. Reynaldos Mexican Food | NantKwest vs. Juniata Valley Financial |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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