Correlation Between Kronos Bio and Nuvectis Pharma
Can any of the company-specific risk be diversified away by investing in both Kronos Bio and Nuvectis 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 Nuvectis 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 Nuvectis Pharma, you can compare the effects of market volatilities on Kronos Bio and Nuvectis 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 Nuvectis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Bio and Nuvectis Pharma.
Diversification Opportunities for Kronos Bio and Nuvectis Pharma
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kronos and Nuvectis is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Bio and Nuvectis Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvectis 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 Nuvectis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvectis Pharma has no effect on the direction of Kronos Bio i.e., Kronos Bio and Nuvectis Pharma go up and down completely randomly.
Pair Corralation between Kronos Bio and Nuvectis Pharma
Given the investment horizon of 90 days Kronos Bio is expected to generate 2.72 times less return on investment than Nuvectis Pharma. But when comparing it to its historical volatility, Kronos Bio is 2.32 times less risky than Nuvectis Pharma. It trades about 0.14 of its potential returns per unit of risk. Nuvectis Pharma is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 469.00 in Nuvectis Pharma on October 20, 2024 and sell it today you would earn a total of 80.00 from holding Nuvectis Pharma or generate 17.06% 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. Nuvectis Pharma
Performance |
| Timeline |
| Kronos Bio |
| Nuvectis Pharma |
Kronos Bio and Nuvectis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Bio and Nuvectis Pharma
The main advantage of trading using opposite Kronos Bio and Nuvectis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Bio position performs unexpectedly, Nuvectis 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 Nuvectis Pharma will offset losses from the drop in Nuvectis Pharma's long position.| Kronos Bio vs. Cyclerion Therapeutics | Kronos Bio vs. Larimar Therapeutics | Kronos Bio vs. Addex Therapeutics | Kronos Bio vs. Achilles Therapeutics PLC |
| Nuvectis Pharma vs. Replimune Group | Nuvectis Pharma vs. Lyra Therapeutics | Nuvectis Pharma vs. Kronos Bio | Nuvectis Pharma vs. Gossamer Bio |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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