Correlation Between Kronos Bio and Cocrystal Pharma
Can any of the company-specific risk be diversified away by investing in both Kronos Bio and Cocrystal Pharma 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 Kronos Bio and Cocrystal Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kronos Bio and Cocrystal Pharma, you can compare the effects of market volatilities on Kronos Bio and Cocrystal Pharma 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 Kronos Bio with a short position of Cocrystal Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Bio and Cocrystal Pharma.
Diversification Opportunities for Kronos Bio and Cocrystal Pharma
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kronos and Cocrystal is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Bio and Cocrystal Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cocrystal Pharma and Kronos Bio 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 Kronos Bio are associated (or correlated) with Cocrystal Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cocrystal Pharma has no effect on the direction of Kronos Bio i.e., Kronos Bio and Cocrystal Pharma go up and down completely randomly.
Pair Corralation between Kronos Bio and Cocrystal Pharma
Given the investment horizon of 90 days Kronos Bio is expected to under-perform the Cocrystal Pharma. In addition to that, Kronos Bio is 1.17 times more volatile than Cocrystal Pharma. It trades about 0.0 of its total potential returns per unit of risk. Cocrystal Pharma is currently generating about 0.01 per unit of volatility. If you would invest 244.00 in Cocrystal Pharma on September 4, 2024 and sell it today you would lose (37.00) from holding Cocrystal Pharma or give up 15.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kronos Bio vs. Cocrystal Pharma
Performance |
| Timeline |
| Kronos Bio |
| Cocrystal Pharma |
Kronos Bio and Cocrystal Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Bio and Cocrystal Pharma
The main advantage of trading using opposite Kronos Bio and Cocrystal Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Bio position performs unexpectedly, Cocrystal Pharma 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 Cocrystal Pharma will offset losses from the drop in Cocrystal Pharma's long position.| Kronos Bio vs. Candel Therapeutics | Kronos Bio vs. Cingulate Warrants | Kronos Bio vs. Unicycive Therapeutics | Kronos Bio vs. Cardio Diagnostics Holdings |
| Cocrystal Pharma vs. RenovoRx | Cocrystal Pharma vs. Tempest Therapeutics | Cocrystal Pharma vs. Ikena Oncology | Cocrystal Pharma vs. Moleculin Biotech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |