Correlation Between Kura Oncology and MeiraGTx Holdings
Can any of the company-specific risk be diversified away by investing in both Kura Oncology and MeiraGTx Holdings 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 MeiraGTx Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kura Oncology and MeiraGTx Holdings PLC, you can compare the effects of market volatilities on Kura Oncology and MeiraGTx Holdings 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 MeiraGTx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Oncology and MeiraGTx Holdings.
Diversification Opportunities for Kura Oncology and MeiraGTx Holdings
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kura and MeiraGTx is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kura Oncology and MeiraGTx Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeiraGTx Holdings PLC 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 MeiraGTx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeiraGTx Holdings PLC has no effect on the direction of Kura Oncology i.e., Kura Oncology and MeiraGTx Holdings go up and down completely randomly.
Pair Corralation between Kura Oncology and MeiraGTx Holdings
Given the investment horizon of 90 days Kura Oncology is expected to generate 0.91 times more return on investment than MeiraGTx Holdings. However, Kura Oncology is 1.1 times less risky than MeiraGTx Holdings. It trades about 0.01 of its potential returns per unit of risk. MeiraGTx Holdings PLC is currently generating about 0.01 per unit of risk. If you would invest 1,317 in Kura Oncology on August 27, 2024 and sell it today you would lose (237.00) from holding Kura Oncology or give up 18.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Oncology vs. MeiraGTx Holdings PLC
Performance |
| Timeline |
| Kura Oncology |
| MeiraGTx Holdings PLC |
Kura Oncology and MeiraGTx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Oncology and MeiraGTx Holdings
The main advantage of trading using opposite Kura Oncology and MeiraGTx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Oncology position performs unexpectedly, MeiraGTx Holdings 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 MeiraGTx Holdings will offset losses from the drop in MeiraGTx Holdings' long position.| Kura Oncology vs. Protagonist Therapeutics | Kura Oncology vs. Merus BV | Kura Oncology vs. Replimune Group | Kura Oncology vs. Kalvista Pharmaceuticals |
| MeiraGTx Holdings vs. Ideaya Biosciences | MeiraGTx Holdings vs. AnaptysBio | MeiraGTx Holdings vs. Keros Therapeutics | MeiraGTx Holdings vs. Uniqure NV |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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