Correlation Between Kamada and ProMIS Neurosciences

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

By analyzing existing cross correlation between Kamada and ProMIS Neurosciences, you can compare the effects of market volatilities on Kamada and ProMIS Neurosciences 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 ProMIS Neurosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamada and ProMIS Neurosciences.

Diversification Opportunities for Kamada and ProMIS Neurosciences

0.15

Correlation Coefficient

Kamada  ProMIS Neurosciences

Average diversification

The 3 months correlation between Kamada and ProMIS is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and ProMIS Neurosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProMIS Neurosciences 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 ProMIS Neurosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProMIS Neurosciences has no effect on the direction of Kamada i.e., Kamada and ProMIS Neurosciences go up and down completely randomly.

Pair Corralation between Kamada and ProMIS Neurosciences

Given the investment horizon of 90 days Kamada is expected to generate 11.01 times less return on investment than ProMIS Neurosciences. But when comparing it to its historical volatility, Kamada is 9.67 times less risky than ProMIS Neurosciences. It trades about 0.06 of its potential returns per unit of risk. ProMIS Neurosciences is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  64.00  in ProMIS Neurosciences on May 4, 2025 and sell it today you would earn a total of  13.00  from holding ProMIS Neurosciences or generate 20.31% return on investment over 90 days.

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

Kamada  vs.  ProMIS Neurosciences

Kamada

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kamada are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental indicators, Kamada may actually be approaching a critical reversion point that can send shares even higher in September 2025.

ProMIS Neurosciences

Risk-Adjusted Performance

Modest

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

Pair Trading with Kamada and ProMIS Neurosciences

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

The idea behind Kamada and ProMIS Neurosciences 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.