Correlation Between Kura Oncology and Akero Therapeutics
Can any of the company-specific risk be diversified away by investing in both Kura Oncology and Akero 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 Kura Oncology and Akero Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kura Oncology and Akero Therapeutics, you can compare the effects of market volatilities on Kura Oncology and Akero 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 Kura Oncology with a short position of Akero Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Oncology and Akero Therapeutics.
Diversification Opportunities for Kura Oncology and Akero Therapeutics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kura and Akero is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kura Oncology and Akero Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akero Therapeutics and Kura Oncology 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 Kura Oncology are associated (or correlated) with Akero Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akero Therapeutics has no effect on the direction of Kura Oncology i.e., Kura Oncology and Akero Therapeutics go up and down completely randomly.
Pair Corralation between Kura Oncology and Akero Therapeutics
Given the investment horizon of 90 days Kura Oncology is expected to under-perform the Akero Therapeutics. In addition to that, Kura Oncology is 2.2 times more volatile than Akero Therapeutics. It trades about -0.22 of its total potential returns per unit of risk. Akero Therapeutics is currently generating about 0.14 per unit of volatility. If you would invest 2,971 in Akero Therapeutics on August 27, 2024 and sell it today you would earn a total of 302.00 from holding Akero Therapeutics or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Oncology vs. Akero Therapeutics
Performance |
| Timeline |
| Kura Oncology |
| Akero Therapeutics |
Kura Oncology and Akero Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Oncology and Akero Therapeutics
The main advantage of trading using opposite Kura Oncology and Akero Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Oncology position performs unexpectedly, Akero 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 Akero Therapeutics will offset losses from the drop in Akero Therapeutics' long position.| Kura Oncology vs. Protagonist Therapeutics | Kura Oncology vs. Merus BV | Kura Oncology vs. Replimune Group | Kura Oncology vs. Kalvista Pharmaceuticals |
| Akero Therapeutics vs. Eliem Therapeutics | Akero Therapeutics vs. HCW Biologics | Akero Therapeutics vs. Scpharmaceuticals | Akero Therapeutics vs. Milestone Pharmaceuticals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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