Correlation Between Kineta and Lisata Therapeutics

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

By analyzing existing cross correlation between Kineta Inc and Lisata Therapeutics, you can compare the effects of market volatilities on Kineta and Lisata Therapeutics 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 Lisata Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kineta and Lisata Therapeutics.

Diversification Opportunities for Kineta and Lisata Therapeutics

-0.3

Correlation Coefficient

Kineta  Lisata Therapeutics

Very good diversification

The 3 months correlation between Kineta and Lisata is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kineta Inc and Lisata Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lisata Therapeutics 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 Lisata Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lisata Therapeutics has no effect on the direction of Kineta i.e., Kineta and Lisata Therapeutics go up and down completely randomly.

Pair Corralation between Kineta and Lisata Therapeutics

If you would invest  282.00  in Lisata Therapeutics on October 11, 2024 and sell it today you would earn a total of  98.00  from holding Lisata Therapeutics or generate 34.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Kineta Inc  vs.  Lisata Therapeutics

Kineta Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kineta Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Lisata Therapeutics

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lisata Therapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Lisata Therapeutics sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kineta and Lisata Therapeutics

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

The idea behind Kineta Inc and Lisata Therapeutics 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.