Correlation Between Kamada and Nextgen
Can any of the company-specific risk be diversified away by investing in both Kamada and Nextgen 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 Kamada and Nextgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Nextgen, you can compare the effects of market volatilities on Kamada and Nextgen 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 Kamada with a short position of Nextgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Nextgen.
Diversification Opportunities for Kamada and Nextgen
Good diversification
The 3 months correlation between Kamada and Nextgen is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Nextgen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextgen and Kamada 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 Kamada are associated (or correlated) with Nextgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextgen has no effect on the direction of Kamada i.e., Kamada and Nextgen go up and down completely randomly.
Pair Corralation between Kamada and Nextgen
Assuming the 90 days trading horizon Kamada is expected to generate 0.66 times more return on investment than Nextgen. However, Kamada is 1.51 times less risky than Nextgen. It trades about 0.1 of its potential returns per unit of risk. Nextgen is currently generating about 0.04 per unit of risk. If you would invest 210,762 in Kamada on December 30, 2024 and sell it today you would earn a total of 42,638 from holding Kamada or generate 20.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kamada vs. Nextgen
Performance |
Timeline |
Kamada |
Nextgen |
Kamada and Nextgen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kamada and Nextgen
The main advantage of trading using opposite Kamada and Nextgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Nextgen 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 Nextgen will offset losses from the drop in Nextgen's long position.Kamada vs. Kamada | Kamada vs. Teva Pharmaceutical Industries | Kamada vs. Tower Semiconductor | Kamada vs. Elbit Systems |
Nextgen vs. Menif Financial Services | Nextgen vs. Computer Direct | Nextgen vs. One Software Technologies | Nextgen vs. Batm Advanced Communications |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |