Correlation Between KTRA Old and Cellectar Biosciences

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

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

Diversification Opportunities for KTRA Old and Cellectar Biosciences

0.0

Correlation Coefficient

KTRA Old  Cellectar Biosciences

Pay attention - limited upside

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

Pair Corralation between KTRA Old and Cellectar Biosciences

If you would invest  24.00  in Cellectar Biosciences on December 20, 2024 and sell it today you would earn a total of  15.00  from holding Cellectar Biosciences or generate 62.5% return on investment over 90 days.

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

KTRA Old  vs.  Cellectar Biosciences

KTRA Old

Risk-Adjusted Performance

Very Weak

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

Cellectar Biosciences

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cellectar Biosciences are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cellectar Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KTRA Old and Cellectar Biosciences

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

The idea behind KTRA Old and Cellectar Biosciences 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.