Correlation Between Kane Biotech and Field Trip

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

By analyzing existing cross correlation between Kane Biotech and Field Trip Health, you can compare the effects of market volatilities on Kane Biotech and Field Trip 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 Kane Biotech with a short position of Field Trip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kane Biotech and Field Trip.

Diversification Opportunities for Kane Biotech and Field Trip

0.06

Correlation Coefficient

Kane Biotech  Field Trip

Significant diversification

The 3 months correlation between Kane and Field is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Kane Biotech and Field Trip Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Field Trip Health and Kane Biotech 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 Kane Biotech are associated (or correlated) with Field Trip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Field Trip Health has no effect on the direction of Kane Biotech i.e., Kane Biotech and Field Trip go up and down completely randomly.

Pair Corralation between Kane Biotech and Field Trip

If you would invest  4.12  in Field Trip Health on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Field Trip Health or generate 0.0% return on investment over 90 days.

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

Kane Biotech  vs.  Field Trip Health

Kane Biotech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kane Biotech 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 forward indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Field Trip Health

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Kane Biotech and Field Trip

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

The idea behind Kane Biotech and Field Trip Health 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.