Correlation Between Kronos Bio and Kura Oncology
Can any of the company-specific risk be diversified away by investing in both Kronos Bio and Kura 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 Kura 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 Kura Oncology, you can compare the effects of market volatilities on Kronos Bio and Kura 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 Kura Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Bio and Kura Oncology.
Diversification Opportunities for Kronos Bio and Kura Oncology
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kronos and Kura is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Bio and Kura Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura 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 Kura Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Oncology has no effect on the direction of Kronos Bio i.e., Kronos Bio and Kura Oncology go up and down completely randomly.
Pair Corralation between Kronos Bio and Kura Oncology
Given the investment horizon of 90 days Kronos Bio is expected to generate 1.1 times more return on investment than Kura Oncology. However, Kronos Bio is 1.1 times more volatile than Kura Oncology. It trades about 0.14 of its potential returns per unit of risk. Kura Oncology is currently generating about -0.48 per unit of risk. If you would invest 93.00 in Kronos Bio on October 20, 2024 and sell it today you would earn a total of 6.00 from holding Kronos Bio or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kronos Bio vs. Kura Oncology
Performance |
| Timeline |
| Kronos Bio |
| Kura Oncology |
Kronos Bio and Kura Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Bio and Kura Oncology
The main advantage of trading using opposite Kronos Bio and Kura Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Bio position performs unexpectedly, Kura 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 Kura Oncology will offset losses from the drop in Kura 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 |
| Kura Oncology vs. Protagonist Therapeutics | Kura Oncology vs. Merus BV | Kura Oncology vs. Replimune Group | Kura Oncology vs. Kalvista 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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