Correlation Between Kamada and Vir Biotechnology
Can any of the company-specific risk be diversified away by investing in both Kamada and Vir Biotechnology 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 Vir Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamada and Vir Biotechnology, you can compare the effects of market volatilities on Kamada and Vir Biotechnology 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 Vir Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and Vir Biotechnology.
Diversification Opportunities for Kamada and Vir Biotechnology
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kamada and Vir is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Vir Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vir Biotechnology 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 Vir Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vir Biotechnology has no effect on the direction of Kamada i.e., Kamada and Vir Biotechnology go up and down completely randomly.
Pair Corralation between Kamada and Vir Biotechnology
Given the investment horizon of 90 days Kamada is expected to under-perform the Vir Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Kamada is 2.2 times less risky than Vir Biotechnology. The stock trades about -0.02 of its potential returns per unit of risk. The Vir Biotechnology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 452.00 in Vir Biotechnology on August 15, 2025 and sell it today you would earn a total of 95.00 from holding Vir Biotechnology or generate 21.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamada vs. Vir Biotechnology
Performance |
| Timeline |
| Kamada |
| Vir Biotechnology |
Kamada and Vir Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamada and Vir Biotechnology
The main advantage of trading using opposite Kamada and Vir Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada position performs unexpectedly, Vir Biotechnology 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 Vir Biotechnology will offset losses from the drop in Vir Biotechnology's long position.| Kamada vs. Evolus Inc | Kamada vs. Solid Biosciences LLC | Kamada vs. QuantumSi | Kamada vs. Rocket Pharmaceuticals |
| Vir Biotechnology vs. Maravai Lifesciences Holdings | Vir Biotechnology vs. Iovance Biotherapeutics | Vir Biotechnology vs. Replimune Group | Vir Biotechnology vs. Prime Medicine, Common |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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