Correlation Between Kineta and Aditxt
Can any of the company-specific risk be diversified away by investing in both Kineta and Aditxt 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 Kineta and Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kineta Inc and Aditxt Inc, you can compare the effects of market volatilities on Kineta and Aditxt 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 Kineta with a short position of Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kineta and Aditxt.
Diversification Opportunities for Kineta and Aditxt
Poor diversification
The 3 months correlation between Kineta and Aditxt is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kineta Inc and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc and Kineta 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 Kineta Inc are associated (or correlated) with Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of Kineta i.e., Kineta and Aditxt go up and down completely randomly.
Pair Corralation between Kineta and Aditxt
Allowing for the 90-day total investment horizon Kineta Inc is expected to under-perform the Aditxt. In addition to that, Kineta is 2.69 times more volatile than Aditxt Inc. It trades about -0.11 of its total potential returns per unit of risk. Aditxt Inc is currently generating about -0.13 per unit of volatility. If you would invest 347.00 in Aditxt Inc on January 27, 2024 and sell it today you would lose (108.00) from holding Aditxt Inc or give up 31.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kineta Inc vs. Aditxt Inc
Performance |
Timeline |
Kineta Inc |
Aditxt Inc |
Kineta and Aditxt Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kineta and Aditxt
The main advantage of trading using opposite Kineta and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kineta position performs unexpectedly, Aditxt 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 Aditxt will offset losses from the drop in Aditxt's long position.Kineta vs. Rezolute | Kineta vs. XOMA Corporation | Kineta vs. Protagenic Therapeutics | Kineta vs. Tempest Therapeutics |
Aditxt vs. Neurobo Pharmaceuticals | Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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