Correlation Between Knight Therapeutics and CuraScientific Corp

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

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

Diversification Opportunities for Knight Therapeutics and CuraScientific Corp

0.0

Correlation Coefficient

Knight Therapeutics  CuraScientific Corp

Pay attention - limited upside

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

Pair Corralation between Knight Therapeutics and CuraScientific Corp

If you would invest  0.00  in CuraScientific Corp on October 9, 2024 and sell it today you would earn a total of  0.00  from holding CuraScientific Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Knight Therapeutics  vs.  CuraScientific Corp

Knight Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

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

CuraScientific Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CuraScientific Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CuraScientific Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Knight Therapeutics and CuraScientific Corp

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

The idea behind Knight Therapeutics and CuraScientific Corp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.