Correlation Between Hookipa Pharma and Kronos Bio
Can any of the company-specific risk be diversified away by investing in both Hookipa Pharma 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 Hookipa Pharma and Kronos Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hookipa Pharma and Kronos Bio, you can compare the effects of market volatilities on Hookipa Pharma 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 Hookipa Pharma with a short position of Kronos Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hookipa Pharma and Kronos Bio.
Diversification Opportunities for Hookipa Pharma and Kronos Bio
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hookipa and Kronos is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and Kronos Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kronos Bio and Hookipa Pharma 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 Hookipa Pharma 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 Hookipa Pharma i.e., Hookipa Pharma and Kronos Bio go up and down completely randomly.
Pair Corralation between Hookipa Pharma and Kronos Bio
Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the Kronos Bio. In addition to that, Hookipa Pharma is 1.01 times more volatile than Kronos Bio. It trades about -0.22 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hookipa Pharma vs. Kronos Bio
Performance |
| Timeline |
| Hookipa Pharma |
| Kronos Bio |
Hookipa Pharma and Kronos Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hookipa Pharma and Kronos Bio
The main advantage of trading using opposite Hookipa Pharma and Kronos Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hookipa Pharma 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.| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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