Correlation Between KING PHARMACEUTICALS and Indaptus Therapeutics

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

By analyzing existing cross correlation between KING PHARMACEUTICALS INC and Indaptus Therapeutics, you can compare the effects of market volatilities on KING PHARMACEUTICALS and Indaptus Therapeutics 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 KING PHARMACEUTICALS with a short position of Indaptus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KING PHARMACEUTICALS and Indaptus Therapeutics.

Diversification Opportunities for KING PHARMACEUTICALS and Indaptus Therapeutics

-0.74

Correlation Coefficient

KING PHARMACEUTICALS  Indaptus Therapeutics

Pay attention - limited upside

The 3 months correlation between KING and Indaptus is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding KING PHARMACEUTICALS INC and Indaptus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indaptus Therapeutics and KING PHARMACEUTICALS 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 KING PHARMACEUTICALS INC are associated (or correlated) with Indaptus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indaptus Therapeutics has no effect on the direction of KING PHARMACEUTICALS i.e., KING PHARMACEUTICALS and Indaptus Therapeutics go up and down completely randomly.

Pair Corralation between KING PHARMACEUTICALS and Indaptus Therapeutics

Allowing for the 90-day total investment horizon KING PHARMACEUTICALS INC is expected to generate 1.78 times more return on investment than Indaptus Therapeutics. However, KING PHARMACEUTICALS is 1.78 times more volatile than Indaptus Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Indaptus Therapeutics is currently generating about -0.15 per unit of risk. If you would invest  2,660  in KING PHARMACEUTICALS INC on March 25, 2025 and sell it today you would lose (134.00) from holding KING PHARMACEUTICALS INC or give up 5.04% of portfolio value over 90 days.

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

KING PHARMACEUTICALS INC  vs.  Indaptus Therapeutics

KING PHARMACEUTICALS INC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KING PHARMACEUTICALS INC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, KING PHARMACEUTICALS reported solid returns over the last few months and may actually be approaching a breakup point.

Indaptus Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Indaptus Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in July 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with KING PHARMACEUTICALS and Indaptus Therapeutics

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

The idea behind KING PHARMACEUTICALS INC and Indaptus Therapeutics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.