Correlation Between Kamada and Generation Bio
Can any of the company-specific risk be diversified away by investing in both Kamada and Generation 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 Kamada and Generation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Generation Bio Co, you can compare the effects of market volatilities on Kamada and Generation 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 Kamada with a short position of Generation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Generation Bio.
Diversification Opportunities for Kamada and Generation Bio
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kamada and Generation is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio 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 Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of Kamada i.e., Kamada and Generation Bio go up and down completely randomly.
Pair Corralation between Kamada and Generation Bio
Given the investment horizon of 90 days Kamada is expected to generate 0.64 times more return on investment than Generation Bio. However, Kamada is 1.57 times less risky than Generation Bio. It trades about -0.01 of its potential returns per unit of risk. Generation Bio Co is currently generating about -0.08 per unit of risk. If you would invest 705.00 in Kamada on August 21, 2025 and sell it today you would lose (21.00) from holding Kamada or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamada vs. Generation Bio Co
Performance |
| Timeline |
| Kamada |
| Generation Bio |
Kamada and Generation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Generation Bio
The main advantage of trading using opposite Kamada and Generation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Generation 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 Generation Bio will offset losses from the drop in Generation Bio's long position.| Kamada vs. Evolus Inc | Kamada vs. Solid Biosciences LLC | Kamada vs. QuantumSi | Kamada vs. Rocket Pharmaceuticals |
| Generation Bio vs. Verrica Pharmaceuticals | Generation Bio vs. Mural Oncology plc | Generation Bio vs. Jasper Therapeutics | Generation Bio vs. NextCure |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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