Correlation Between NantKwest and Dynavax Technologies

Can any of the company-specific risk be diversified away by investing in both NantKwest and Dynavax Technologies 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 NantKwest and Dynavax Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NantKwest and Dynavax Technologies, you can compare the effects of market volatilities on NantKwest and Dynavax Technologies 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 NantKwest with a short position of Dynavax Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NantKwest and Dynavax Technologies.

Diversification Opportunities for NantKwest and Dynavax Technologies

0.0

Correlation Coefficient

NantKwest  Dynavax Technologies

Pay attention - limited upside

The 3 months correlation between NantKwest and Dynavax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NantKwest and Dynavax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynavax Technologies and NantKwest 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 NantKwest are associated (or correlated) with Dynavax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynavax Technologies has no effect on the direction of NantKwest i.e., NantKwest and Dynavax Technologies go up and down completely randomly.

Pair Corralation between NantKwest and Dynavax Technologies

If you would invest (100.00) in NantKwest on January 25, 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

NantKwest  vs.  Dynavax Technologies

NantKwest

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NantKwest has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, NantKwest is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Dynavax Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dynavax Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with NantKwest and Dynavax Technologies

The main advantage of trading using opposite NantKwest and Dynavax Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NantKwest position performs unexpectedly, Dynavax Technologies 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 Dynavax Technologies will offset losses from the drop in Dynavax Technologies' long position.

The idea behind NantKwest and Dynavax Technologies 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.