Correlation Between Nektar Therapeutics and Sentinel Total
Can any of the company-specific risk be diversified away by investing in both Nektar Therapeutics and Sentinel Total 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 Nektar Therapeutics and Sentinel Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nektar Therapeutics and Sentinel Total Return, you can compare the effects of market volatilities on Nektar Therapeutics and Sentinel Total 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 Nektar Therapeutics with a short position of Sentinel Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nektar Therapeutics and Sentinel Total.
Diversification Opportunities for Nektar Therapeutics and Sentinel Total
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nektar and Sentinel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nektar Therapeutics and Sentinel Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Total Return and Nektar 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 Nektar Therapeutics are associated (or correlated) with Sentinel Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Total Return has no effect on the direction of Nektar Therapeutics i.e., Nektar Therapeutics and Sentinel Total go up and down completely randomly.
Pair Corralation between Nektar Therapeutics and Sentinel Total
If you would invest 224.00 in Nektar Therapeutics on January 17, 2024 and sell it today you would lose (67.00) from holding Nektar Therapeutics or give up 29.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nektar Therapeutics vs. Sentinel Total Return
Performance |
| Timeline |
| Nektar Therapeutics |
| Sentinel Total Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nektar Therapeutics and Sentinel Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nektar Therapeutics and Sentinel Total
The main advantage of trading using opposite Nektar Therapeutics and Sentinel Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nektar Therapeutics position performs unexpectedly, Sentinel Total 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 Sentinel Total will offset losses from the drop in Sentinel Total's long position.| Nektar Therapeutics vs. PetIQ Inc | Nektar Therapeutics vs. Emergent Biosolutions | Nektar Therapeutics vs. Neurocrine Biosciences | Nektar Therapeutics vs. Haleon plc |
| Sentinel Total vs. Rational Strategic Allocation | Sentinel Total vs. Qs Large Cap | Sentinel Total vs. Qs Moderate Growth | Sentinel Total vs. Gavekal Kl Allocation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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