Correlation Between Krystal Biotech and Abcellera Biologics
Can any of the company-specific risk be diversified away by investing in both Krystal Biotech and Abcellera Biologics 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 Krystal Biotech and Abcellera Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krystal Biotech and Abcellera Biologics, you can compare the effects of market volatilities on Krystal Biotech and Abcellera Biologics 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 Krystal Biotech with a short position of Abcellera Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krystal Biotech and Abcellera Biologics.
Diversification Opportunities for Krystal Biotech and Abcellera Biologics
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Krystal and Abcellera is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Krystal Biotech and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics and Krystal Biotech 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 Krystal Biotech are associated (or correlated) with Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of Krystal Biotech i.e., Krystal Biotech and Abcellera Biologics go up and down completely randomly.
Pair Corralation between Krystal Biotech and Abcellera Biologics
Given the investment horizon of 90 days Krystal Biotech is expected to generate 0.62 times more return on investment than Abcellera Biologics. However, Krystal Biotech is 1.61 times less risky than Abcellera Biologics. It trades about 0.16 of its potential returns per unit of risk. Abcellera Biologics is currently generating about 0.04 per unit of risk. If you would invest 17,689 in Krystal Biotech on August 28, 2024 and sell it today you would earn a total of 1,767 from holding Krystal Biotech or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Krystal Biotech vs. Abcellera Biologics
Performance |
| Timeline |
| Krystal Biotech |
| Abcellera Biologics |
Krystal Biotech and Abcellera Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krystal Biotech and Abcellera Biologics
The main advantage of trading using opposite Krystal Biotech and Abcellera Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krystal Biotech position performs unexpectedly, Abcellera Biologics 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 Abcellera Biologics will offset losses from the drop in Abcellera Biologics' long position.| Krystal Biotech vs. Eliem Therapeutics | Krystal Biotech vs. HCW Biologics | Krystal Biotech vs. Scpharmaceuticals | Krystal Biotech vs. Milestone Pharmaceuticals |
| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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