Correlation Between NantKwest and Auris Medical

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Can any of the company-specific risk be diversified away by investing in both NantKwest and Auris Medical 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 Auris Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NantKwest and Auris Medical Holding, you can compare the effects of market volatilities on NantKwest and Auris Medical 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 Auris Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NantKwest and Auris Medical.

Diversification Opportunities for NantKwest and Auris Medical

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between NantKwest and Auris Medical

If you would invest (100.00) in Auris Medical Holding on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Auris Medical Holding or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

NantKwest  vs.  Auris Medical Holding

 Performance 
       Timeline  
NantKwest 

Risk-Adjusted Performance

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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 newest stock price mess, may contribute to short-term losses for the institutional investors.
Auris Medical Holding 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Auris Medical Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Auris Medical is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

NantKwest and Auris Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NantKwest and Auris Medical

The main advantage of trading using opposite NantKwest and Auris Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NantKwest position performs unexpectedly, Auris Medical 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 Auris Medical will offset losses from the drop in Auris Medical's long position.
The idea behind NantKwest and Auris Medical Holding 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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