Correlation Between Krystal Biotech and Kymera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Krystal Biotech and Kymera Therapeutics 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 Kymera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krystal Biotech and Kymera Therapeutics, you can compare the effects of market volatilities on Krystal Biotech and Kymera Therapeutics 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 Kymera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krystal Biotech and Kymera Therapeutics.
Diversification Opportunities for Krystal Biotech and Kymera Therapeutics
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Krystal and Kymera is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Krystal Biotech and Kymera Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kymera Therapeutics 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 Kymera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kymera Therapeutics has no effect on the direction of Krystal Biotech i.e., Krystal Biotech and Kymera Therapeutics go up and down completely randomly.
Pair Corralation between Krystal Biotech and Kymera Therapeutics
Given the investment horizon of 90 days Krystal Biotech is expected to generate 0.96 times more return on investment than Kymera Therapeutics. However, Krystal Biotech is 1.05 times less risky than Kymera Therapeutics. It trades about 0.17 of its potential returns per unit of risk. Kymera Therapeutics is currently generating about -0.08 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 1,963 from holding Krystal Biotech or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Krystal Biotech vs. Kymera Therapeutics
Performance |
| Timeline |
| Krystal Biotech |
| Kymera Therapeutics |
Krystal Biotech and Kymera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krystal Biotech and Kymera Therapeutics
The main advantage of trading using opposite Krystal Biotech and Kymera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krystal Biotech position performs unexpectedly, Kymera Therapeutics 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 Kymera Therapeutics will offset losses from the drop in Kymera Therapeutics' long position.| Krystal Biotech vs. MeiraGTx Holdings PLC | Krystal Biotech vs. Apellis Pharmaceuticals | Krystal Biotech vs. Regenxbio | Krystal Biotech vs. Rhythm Pharmaceuticals |
| Kymera Therapeutics vs. Foghorn Therapeutics | Kymera Therapeutics vs. Shattuck Labs | Kymera Therapeutics vs. Monte Rosa Therapeutics | Kymera Therapeutics vs. Nurix Therapeutics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |