Correlation Between Keros Therapeutics and Surrozen
Can any of the company-specific risk be diversified away by investing in both Keros Therapeutics and Surrozen 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 Keros Therapeutics and Surrozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keros Therapeutics and Surrozen, you can compare the effects of market volatilities on Keros Therapeutics and Surrozen 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 Keros Therapeutics with a short position of Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keros Therapeutics and Surrozen.
Diversification Opportunities for Keros Therapeutics and Surrozen
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Keros and Surrozen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Keros Therapeutics and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen and Keros Therapeutics 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 Keros Therapeutics are associated (or correlated) with Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Keros Therapeutics i.e., Keros Therapeutics and Surrozen go up and down completely randomly.
Pair Corralation between Keros Therapeutics and Surrozen
Given the investment horizon of 90 days Keros Therapeutics is expected to generate 2.02 times less return on investment than Surrozen. But when comparing it to its historical volatility, Keros Therapeutics is 1.76 times less risky than Surrozen. It trades about 0.04 of its potential returns per unit of risk. Surrozen is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 903.00 in Surrozen on September 1, 2024 and sell it today you would earn a total of 317.00 from holding Surrozen or generate 35.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keros Therapeutics vs. Surrozen
Performance |
| Timeline |
| Keros Therapeutics |
| Surrozen |
Keros Therapeutics and Surrozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keros Therapeutics and Surrozen
The main advantage of trading using opposite Keros Therapeutics and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keros Therapeutics position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen's long position.| Keros Therapeutics vs. Ideaya Biosciences | Keros Therapeutics vs. AnaptysBio | Keros Therapeutics vs. MeiraGTx Holdings PLC | Keros Therapeutics vs. Janux Therapeutics |
| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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