Correlation Between Kronos Bio and Elevation Oncology
Can any of the company-specific risk be diversified away by investing in both Kronos Bio and Elevation 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 Kronos Bio and Elevation Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kronos Bio and Elevation Oncology, you can compare the effects of market volatilities on Kronos Bio and Elevation 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 Kronos Bio with a short position of Elevation Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Bio and Elevation Oncology.
Diversification Opportunities for Kronos Bio and Elevation Oncology
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kronos and Elevation is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Bio and Elevation Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Oncology 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 Elevation Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Oncology has no effect on the direction of Kronos Bio i.e., Kronos Bio and Elevation Oncology go up and down completely randomly.
Pair Corralation between Kronos Bio and Elevation Oncology
Given the investment horizon of 90 days Kronos Bio is expected to generate 0.74 times more return on investment than Elevation Oncology. However, Kronos Bio is 1.35 times less risky than Elevation Oncology. It trades about 0.02 of its potential returns per unit of risk. Elevation Oncology is currently generating about -0.05 per unit of risk. If you would invest 106.00 in Kronos Bio on November 5, 2024 and sell it today you would lose (8.00) from holding Kronos Bio or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kronos Bio vs. Elevation Oncology
Performance |
| Timeline |
| Kronos Bio |
| Elevation Oncology |
Kronos Bio and Elevation Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Bio and Elevation Oncology
The main advantage of trading using opposite Kronos Bio and Elevation Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Bio position performs unexpectedly, Elevation 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 Elevation Oncology will offset losses from the drop in Elevation Oncology's long position.| Kronos Bio vs. Cyclerion Therapeutics | Kronos Bio vs. Larimar Therapeutics | Kronos Bio vs. Addex Therapeutics | Kronos Bio vs. Achilles Therapeutics PLC |
| Elevation Oncology vs. Ocean Biomedical | Elevation Oncology vs. Zura Bio Limited | Elevation Oncology vs. Enveric Biosciences | Elevation Oncology vs. Hepion 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |