Correlation Between Amylyx Pharmaceuticals and Kura Oncology
Can any of the company-specific risk be diversified away by investing in both Amylyx Pharmaceuticals and Kura Oncology 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 Amylyx Pharmaceuticals and Kura Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amylyx Pharmaceuticals and Kura Oncology, you can compare the effects of market volatilities on Amylyx Pharmaceuticals and Kura Oncology 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 Amylyx Pharmaceuticals with a short position of Kura Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amylyx Pharmaceuticals and Kura Oncology.
Diversification Opportunities for Amylyx Pharmaceuticals and Kura Oncology
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amylyx and Kura is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Amylyx Pharmaceuticals and Kura Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Oncology and Amylyx 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 Amylyx Pharmaceuticals are associated (or correlated) with Kura Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Oncology has no effect on the direction of Amylyx Pharmaceuticals i.e., Amylyx Pharmaceuticals and Kura Oncology go up and down completely randomly.
Pair Corralation between Amylyx Pharmaceuticals and Kura Oncology
Given the investment horizon of 90 days Amylyx Pharmaceuticals is expected to generate 0.7 times more return on investment than Kura Oncology. However, Amylyx Pharmaceuticals is 1.44 times less risky than Kura Oncology. It trades about 0.08 of its potential returns per unit of risk. Kura Oncology is currently generating about -0.21 per unit of risk. If you would invest 533.00 in Amylyx Pharmaceuticals on August 27, 2024 and sell it today you would earn a total of 33.00 from holding Amylyx Pharmaceuticals or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amylyx Pharmaceuticals vs. Kura Oncology
Performance |
| Timeline |
| Amylyx Pharmaceuticals |
| Kura Oncology |
Amylyx Pharmaceuticals and Kura Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amylyx Pharmaceuticals and Kura Oncology
The main advantage of trading using opposite Amylyx Pharmaceuticals and Kura Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amylyx Pharmaceuticals position performs unexpectedly, Kura Oncology 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 Kura Oncology will offset losses from the drop in Kura Oncology's long position.| Amylyx Pharmaceuticals vs. Terns Pharmaceuticals | Amylyx Pharmaceuticals vs. Acumen Pharmaceuticals | Amylyx Pharmaceuticals vs. Inozyme Pharma | Amylyx Pharmaceuticals vs. X4 Pharmaceuticals |
| Kura Oncology vs. Protagonist Therapeutics | Kura Oncology vs. Merus BV | Kura Oncology vs. Replimune Group | Kura Oncology vs. Kalvista Pharmaceuticals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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