Correlation Between Kura Oncology and Scholar Rock
Can any of the company-specific risk be diversified away by investing in both Kura Oncology and Scholar Rock 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 Scholar Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kura Oncology and Scholar Rock Holding, you can compare the effects of market volatilities on Kura Oncology and Scholar Rock 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 Scholar Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kura Oncology and Scholar Rock.
Diversification Opportunities for Kura Oncology and Scholar Rock
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kura and Scholar is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kura Oncology and Scholar Rock Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scholar Rock Holding 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 Scholar Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scholar Rock Holding has no effect on the direction of Kura Oncology i.e., Kura Oncology and Scholar Rock go up and down completely randomly.
Pair Corralation between Kura Oncology and Scholar Rock
Given the investment horizon of 90 days Kura Oncology is expected to generate 141.14 times less return on investment than Scholar Rock. But when comparing it to its historical volatility, Kura Oncology is 4.15 times less risky than Scholar Rock. It trades about 0.0 of its potential returns per unit of risk. Scholar Rock Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 767.00 in Scholar Rock Holding on August 26, 2024 and sell it today you would earn a total of 2,225 from holding Scholar Rock Holding or generate 290.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kura Oncology vs. Scholar Rock Holding
Performance |
| Timeline |
| Kura Oncology |
| Scholar Rock Holding |
Kura Oncology and Scholar Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kura Oncology and Scholar Rock
The main advantage of trading using opposite Kura Oncology and Scholar Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kura Oncology position performs unexpectedly, Scholar Rock 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 Scholar Rock will offset losses from the drop in Scholar Rock's long position.| Kura Oncology vs. Protagonist Therapeutics | Kura Oncology vs. Merus BV | Kura Oncology vs. Replimune Group | Kura Oncology vs. Crinetics Pharmaceuticals |
| Scholar Rock vs. Revolution Medicines | Scholar Rock vs. Black Diamond Therapeutics | Scholar Rock vs. Passage Bio | Scholar Rock vs. Monte Rosa 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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