Correlation Between Kezar Life and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Kezar Life and Cue Biopharma 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 Kezar Life and Cue Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kezar Life Sciences and Cue Biopharma, you can compare the effects of market volatilities on Kezar Life and Cue Biopharma 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 Kezar Life with a short position of Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kezar Life and Cue Biopharma.
Diversification Opportunities for Kezar Life and Cue Biopharma
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kezar and Cue is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kezar Life Sciences and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Kezar Life 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 Kezar Life Sciences are associated (or correlated) with Cue Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Biopharma has no effect on the direction of Kezar Life i.e., Kezar Life and Cue Biopharma go up and down completely randomly.
Pair Corralation between Kezar Life and Cue Biopharma
Considering the 90-day investment horizon Kezar Life Sciences is expected to generate 0.43 times more return on investment than Cue Biopharma. However, Kezar Life Sciences is 2.32 times less risky than Cue Biopharma. It trades about -0.04 of its potential returns per unit of risk. Cue Biopharma is currently generating about -0.26 per unit of risk. If you would invest 773.00 in Kezar Life Sciences on August 29, 2024 and sell it today you would lose (30.00) from holding Kezar Life Sciences or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kezar Life Sciences vs. Cue Biopharma
Performance |
| Timeline |
| Kezar Life Sciences |
| Cue Biopharma |
Kezar Life and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kezar Life and Cue Biopharma
The main advantage of trading using opposite Kezar Life and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kezar Life position performs unexpectedly, Cue Biopharma 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 Cue Biopharma will offset losses from the drop in Cue Biopharma's long position.| Kezar Life vs. Eliem Therapeutics | Kezar Life vs. Scpharmaceuticals | Kezar Life vs. Milestone Pharmaceuticals | Kezar Life vs. Seres Therapeutics |
| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |