Correlation Between Hongkong and Cytokinetics

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Can any of the company-specific risk be diversified away by investing in both Hongkong and Cytokinetics 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 Hongkong and Cytokinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hongkong And and Cytokinetics, you can compare the effects of market volatilities on Hongkong and Cytokinetics 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 Hongkong with a short position of Cytokinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongkong and Cytokinetics.

Diversification Opportunities for Hongkong and Cytokinetics

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Hongkong and Cytokinetics is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding The Hongkong And and Cytokinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytokinetics and Hongkong 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 The Hongkong And are associated (or correlated) with Cytokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytokinetics has no effect on the direction of Hongkong i.e., Hongkong and Cytokinetics go up and down completely randomly.

Pair Corralation between Hongkong and Cytokinetics

Assuming the 90 days horizon The Hongkong And is expected to under-perform the Cytokinetics. But the otc pink sheet apears to be less risky and, when comparing its historical volatility, The Hongkong And is 3.14 times less risky than Cytokinetics. The otc pink sheet trades about -0.04 of its potential returns per unit of risk. The Cytokinetics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3,503  in Cytokinetics on September 5, 2022 and sell it today you would earn a total of  546.00  from holding Cytokinetics or generate 15.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.6%
ValuesDaily Returns

The Hongkong And  vs.  Cytokinetics

 Performance (%) 
       Timeline  
Hongkong And 
Hongkong Performance
0 of 100
Over the last 90 days The Hongkong And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in January 2023. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Hongkong Price Channel

Cytokinetics 
Cytokinetics Performance
0 of 100
Over the last 90 days Cytokinetics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2023. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Cytokinetics Price Channel

Hongkong and Cytokinetics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hongkong and Cytokinetics

The main advantage of trading using opposite Hongkong and Cytokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongkong position performs unexpectedly, Cytokinetics 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 Cytokinetics will offset losses from the drop in Cytokinetics' long position.
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The idea behind The Hongkong And and Cytokinetics 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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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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