Correlation Between Kronos Bio and Exscientia
Can any of the company-specific risk be diversified away by investing in both Kronos Bio and Exscientia 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 Exscientia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kronos Bio and Exscientia Ltd ADR, you can compare the effects of market volatilities on Kronos Bio and Exscientia 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 Exscientia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Bio and Exscientia.
Diversification Opportunities for Kronos Bio and Exscientia
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kronos and Exscientia is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Bio and Exscientia Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exscientia ADR 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 Exscientia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exscientia ADR has no effect on the direction of Kronos Bio i.e., Kronos Bio and Exscientia go up and down completely randomly.
Pair Corralation between Kronos Bio and Exscientia
If you would invest 97.00 in Kronos Bio on November 6, 2024 and sell it today you would earn a total of 4.00 from holding Kronos Bio or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Kronos Bio vs. Exscientia Ltd ADR
Performance |
| Timeline |
| Kronos Bio |
| Exscientia ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kronos Bio and Exscientia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Bio and Exscientia
The main advantage of trading using opposite Kronos Bio and Exscientia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Bio position performs unexpectedly, Exscientia 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 Exscientia will offset losses from the drop in Exscientia's long position.| Kronos Bio vs. Cyclerion Therapeutics | Kronos Bio vs. Larimar Therapeutics | Kronos Bio vs. Addex Therapeutics | Kronos Bio vs. Achilles Therapeutics PLC |
| Exscientia vs. Zura Bio Limited | Exscientia vs. Elevation Oncology | Exscientia vs. Recursion Pharmaceuticals | Exscientia vs. Atea 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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