Correlation Between Nkarta and Tevogen Bio

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

By analyzing existing cross correlation between Nkarta Inc and Tevogen Bio Holdings, you can compare the effects of market volatilities on Nkarta and Tevogen Bio 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 Nkarta with a short position of Tevogen Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Tevogen Bio.

Diversification Opportunities for Nkarta and Tevogen Bio

0.33

Correlation Coefficient

Nkarta  Tevogen Bio

Weak diversification

The 3 months correlation between Nkarta and Tevogen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Tevogen Bio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tevogen Bio Holdings and Nkarta 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 Nkarta Inc are associated (or correlated) with Tevogen Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tevogen Bio Holdings has no effect on the direction of Nkarta i.e., Nkarta and Tevogen Bio go up and down completely randomly.

Pair Corralation between Nkarta and Tevogen Bio

Given the investment horizon of 90 days Nkarta Inc is expected to under-perform the Tevogen Bio. In addition to that, Nkarta is 1.01 times more volatile than Tevogen Bio Holdings. It trades about 0.0 of its total potential returns per unit of risk. Tevogen Bio Holdings is currently generating about 0.06 per unit of volatility. If you would invest  105.00  in Tevogen Bio Holdings on December 29, 2024 and sell it today you would earn a total of  15.00  from holding Tevogen Bio Holdings or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Nkarta Inc  vs.  Tevogen Bio Holdings

Nkarta Inc

Risk-Adjusted Performance

Very Weak

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

Tevogen Bio Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tevogen Bio Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Tevogen Bio displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nkarta and Tevogen Bio

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

The idea behind Nkarta Inc and Tevogen Bio Holdings 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.