Correlation Between Kymera Therapeutics and Agios Pharm
Can any of the company-specific risk be diversified away by investing in both Kymera Therapeutics and Agios Pharm 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 Kymera Therapeutics and Agios Pharm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kymera Therapeutics and Agios Pharm, you can compare the effects of market volatilities on Kymera Therapeutics and Agios Pharm 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 Kymera Therapeutics with a short position of Agios Pharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kymera Therapeutics and Agios Pharm.
Diversification Opportunities for Kymera Therapeutics and Agios Pharm
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kymera and Agios is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kymera Therapeutics and Agios Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agios Pharm and Kymera Therapeutics 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 Kymera Therapeutics are associated (or correlated) with Agios Pharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agios Pharm has no effect on the direction of Kymera Therapeutics i.e., Kymera Therapeutics and Agios Pharm go up and down completely randomly.
Pair Corralation between Kymera Therapeutics and Agios Pharm
Given the investment horizon of 90 days Kymera Therapeutics is expected to generate 0.88 times more return on investment than Agios Pharm. However, Kymera Therapeutics is 1.13 times less risky than Agios Pharm. It trades about -0.02 of its potential returns per unit of risk. Agios Pharm is currently generating about -0.04 per unit of risk. If you would invest 4,632 in Kymera Therapeutics on November 2, 2024 and sell it today you would lose (587.00) from holding Kymera Therapeutics or give up 12.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kymera Therapeutics vs. Agios Pharm
Performance |
| Timeline |
| Kymera Therapeutics |
| Agios Pharm |
Kymera Therapeutics and Agios Pharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kymera Therapeutics and Agios Pharm
The main advantage of trading using opposite Kymera Therapeutics and Agios Pharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kymera Therapeutics position performs unexpectedly, Agios Pharm 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 Agios Pharm will offset losses from the drop in Agios Pharm's long position.| Kymera Therapeutics vs. Foghorn Therapeutics | Kymera Therapeutics vs. Shattuck Labs | Kymera Therapeutics vs. Monte Rosa Therapeutics | Kymera Therapeutics vs. Nurix Therapeutics |
| Agios Pharm vs. Surrozen | Agios Pharm vs. Armata Pharmaceuticals | Agios Pharm vs. Pasithea Therapeutics Corp | Agios Pharm vs. Aditxt Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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