Correlation Between Krystal Biotech and AVRO Old
Can any of the company-specific risk be diversified away by investing in both Krystal Biotech and AVRO Old 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 AVRO Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krystal Biotech and AVRO Old, you can compare the effects of market volatilities on Krystal Biotech and AVRO Old 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 AVRO Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krystal Biotech and AVRO Old.
Diversification Opportunities for Krystal Biotech and AVRO Old
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Krystal and AVRO is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Krystal Biotech and AVRO Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVRO Old 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 AVRO Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVRO Old has no effect on the direction of Krystal Biotech i.e., Krystal Biotech and AVRO Old go up and down completely randomly.
Pair Corralation between Krystal Biotech and AVRO Old
Given the investment horizon of 90 days Krystal Biotech is expected to generate 0.53 times more return on investment than AVRO Old. However, Krystal Biotech is 1.88 times less risky than AVRO Old. It trades about 0.06 of its potential returns per unit of risk. AVRO Old is currently generating about 0.02 per unit of risk. If you would invest 7,780 in Krystal Biotech on November 2, 2024 and sell it today you would earn a total of 8,331 from holding Krystal Biotech or generate 107.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 69.03% |
| Values | Daily Returns |
Krystal Biotech vs. AVRO Old
Performance |
| Timeline |
| Krystal Biotech |
| AVRO Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Krystal Biotech and AVRO Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krystal Biotech and AVRO Old
The main advantage of trading using opposite Krystal Biotech and AVRO Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krystal Biotech position performs unexpectedly, AVRO Old 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 AVRO Old will offset losses from the drop in AVRO Old's long position.| Krystal Biotech vs. MeiraGTx Holdings PLC | Krystal Biotech vs. Apellis Pharmaceuticals | Krystal Biotech vs. Regenxbio | Krystal Biotech vs. Rhythm Pharmaceuticals |
| AVRO Old vs. Ocean Biomedical | AVRO Old vs. Enveric Biosciences | AVRO Old vs. Elevation Oncology | AVRO Old vs. Zura Bio Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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