Correlation Between Kura Oncology and Cogent Biosciences
Can any of the company-specific risk be diversified away by investing in both Kura Oncology and Cogent Biosciences 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 Cogent Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kura Oncology and Cogent Biosciences, you can compare the effects of market volatilities on Kura Oncology and Cogent Biosciences 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 Cogent Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Oncology and Cogent Biosciences.
Diversification Opportunities for Kura Oncology and Cogent Biosciences
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kura and Cogent is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kura Oncology and Cogent Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Biosciences 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 Cogent Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Biosciences has no effect on the direction of Kura Oncology i.e., Kura Oncology and Cogent Biosciences go up and down completely randomly.
Pair Corralation between Kura Oncology and Cogent Biosciences
Given the investment horizon of 90 days Kura Oncology is expected to under-perform the Cogent Biosciences. In addition to that, Kura Oncology is 1.23 times more volatile than Cogent Biosciences. It trades about -0.17 of its total potential returns per unit of risk. Cogent Biosciences is currently generating about -0.02 per unit of volatility. If you would invest 1,095 in Cogent Biosciences on November 2, 2024 and sell it today you would lose (133.00) from holding Cogent Biosciences or give up 12.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Oncology vs. Cogent Biosciences
Performance |
| Timeline |
| Kura Oncology |
| Cogent Biosciences |
Kura Oncology and Cogent Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Oncology and Cogent Biosciences
The main advantage of trading using opposite Kura Oncology and Cogent Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Oncology position performs unexpectedly, Cogent Biosciences 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 Cogent Biosciences will offset losses from the drop in Cogent Biosciences' long position.| Kura Oncology vs. Protagonist Therapeutics | Kura Oncology vs. Merus BV | Kura Oncology vs. Replimune Group | Kura Oncology vs. Kalvista Pharmaceuticals |
| Cogent Biosciences vs. Larimar Therapeutics | Cogent Biosciences vs. Kura Oncology | Cogent Biosciences vs. Kiniksa Pharmaceuticals | Cogent Biosciences vs. Ideaya Biosciences |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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