Correlation Between Caribou Biosciences and Kronos Bio
Can any of the company-specific risk be diversified away by investing in both Caribou Biosciences and Kronos Bio 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 Caribou Biosciences and Kronos Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caribou Biosciences and Kronos Bio, you can compare the effects of market volatilities on Caribou Biosciences and Kronos Bio 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 Caribou Biosciences with a short position of Kronos Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caribou Biosciences and Kronos Bio.
Diversification Opportunities for Caribou Biosciences and Kronos Bio
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caribou and Kronos is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Caribou Biosciences and Kronos Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kronos Bio and Caribou Biosciences 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 Caribou Biosciences are associated (or correlated) with Kronos Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kronos Bio has no effect on the direction of Caribou Biosciences i.e., Caribou Biosciences and Kronos Bio go up and down completely randomly.
Pair Corralation between Caribou Biosciences and Kronos Bio
Given the investment horizon of 90 days Caribou Biosciences is expected to under-perform the Kronos Bio. In addition to that, Caribou Biosciences is 1.22 times more volatile than Kronos Bio. It trades about -0.15 of its total potential returns per unit of risk. Kronos Bio is currently generating about 0.12 per unit of volatility. If you would invest 87.00 in Kronos Bio on September 27, 2024 and sell it today you would earn a total of 8.00 from holding Kronos Bio or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caribou Biosciences vs. Kronos Bio
Performance |
| Timeline |
| Caribou Biosciences |
| Kronos Bio |
Caribou Biosciences and Kronos Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caribou Biosciences and Kronos Bio
The main advantage of trading using opposite Caribou Biosciences and Kronos Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caribou Biosciences position performs unexpectedly, Kronos Bio 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 Kronos Bio will offset losses from the drop in Kronos Bio's long position.| Caribou Biosciences vs. Intellia Therapeutics | Caribou Biosciences vs. Editas Medicine | Caribou Biosciences vs. Crispr Therapeutics AG | Caribou Biosciences vs. Verve Therapeutics |
| Kronos Bio vs. Cyclerion Therapeutics | Kronos Bio vs. Larimar Therapeutics | Kronos Bio vs. Addex Therapeutics | Kronos Bio vs. Achilles Therapeutics PLC |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |