Correlation Between Kineta and MAIA Biotechnology

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

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

Diversification Opportunities for Kineta and MAIA Biotechnology

0.17

Correlation Coefficient

Kineta  MAIA Biotechnology

Average diversification

The 3 months correlation between Kineta and MAIA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Kineta Inc and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology 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 MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of Kineta i.e., Kineta and MAIA Biotechnology go up and down completely randomly.

Pair Corralation between Kineta and MAIA Biotechnology

If you would invest  207.00  in MAIA Biotechnology on October 12, 2024 and sell it today you would earn a total of  5.00  from holding MAIA Biotechnology or generate 2.42% return on investment over 90 days.

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

Kineta Inc  vs.  MAIA Biotechnology

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 uncertain 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.

MAIA Biotechnology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAIA Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, MAIA Biotechnology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kineta and MAIA Biotechnology

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

The idea behind Kineta Inc and MAIA Biotechnology 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.