Correlation Between Agios Pharm and Kymera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agios Pharm and Kymera 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 Agios Pharm and Kymera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agios Pharm and Kymera Therapeutics, you can compare the effects of market volatilities on Agios Pharm and Kymera 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 Agios Pharm with a short position of Kymera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agios Pharm and Kymera Therapeutics.
Diversification Opportunities for Agios Pharm and Kymera Therapeutics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agios and Kymera is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Agios Pharm and Kymera Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kymera Therapeutics and Agios Pharm 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 Agios Pharm are associated (or correlated) with Kymera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kymera Therapeutics has no effect on the direction of Agios Pharm i.e., Agios Pharm and Kymera Therapeutics go up and down completely randomly.
Pair Corralation between Agios Pharm and Kymera Therapeutics
Given the investment horizon of 90 days Agios Pharm is expected to generate 0.95 times more return on investment than Kymera Therapeutics. However, Agios Pharm is 1.05 times less risky than Kymera Therapeutics. It trades about 0.17 of its potential returns per unit of risk. Kymera Therapeutics is currently generating about 0.02 per unit of risk. If you would invest 4,473 in Agios Pharm on September 2, 2024 and sell it today you would earn a total of 1,466 from holding Agios Pharm or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agios Pharm vs. Kymera Therapeutics
Performance |
| Timeline |
| Agios Pharm |
| Kymera Therapeutics |
Agios Pharm and Kymera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agios Pharm and Kymera Therapeutics
The main advantage of trading using opposite Agios Pharm and Kymera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agios Pharm position performs unexpectedly, Kymera 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 Kymera Therapeutics will offset losses from the drop in Kymera Therapeutics' long position.| Agios Pharm vs. Mereo BioPharma Group | Agios Pharm vs. Blueprint Medicines Corp | Agios Pharm vs. Day One Biopharmaceuticals | Agios Pharm vs. Biomarin Pharmaceutical |
| Kymera Therapeutics vs. Tff Pharmaceuticals | Kymera Therapeutics vs. Eliem Therapeutics | Kymera Therapeutics vs. Inhibrx | Kymera Therapeutics vs. Enliven Therapeutics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |