Correlation Between Kineta and Theriva Biologics

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

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

Diversification Opportunities for Kineta and Theriva Biologics

0.0

Correlation Coefficient

Kineta  Theriva Biologics

Pay attention - limited upside

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

Pair Corralation between Kineta and Theriva Biologics

If you would invest  115.00  in Theriva Biologics on December 19, 2024 and sell it today you would earn a total of  4.00  from holding Theriva Biologics or generate 3.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kineta Inc  vs.  Theriva Biologics

Kineta Inc

Risk-Adjusted Performance

Very Weak

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

Theriva Biologics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Theriva Biologics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Theriva Biologics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kineta and Theriva Biologics

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

The idea behind Kineta Inc and Theriva Biologics 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.