Correlation Between Kezar Life and Helius Medical
Can any of the company-specific risk be diversified away by investing in both Kezar Life and Helius Medical 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 Helius Medical 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 Helius Medical Technologies, you can compare the effects of market volatilities on Kezar Life and Helius Medical 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 Helius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kezar Life and Helius Medical.
Diversification Opportunities for Kezar Life and Helius Medical
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kezar and Helius is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kezar Life Sciences and Helius Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helius Medical Techn 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 Helius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helius Medical Techn has no effect on the direction of Kezar Life i.e., Kezar Life and Helius Medical go up and down completely randomly.
Pair Corralation between Kezar Life and Helius Medical
Considering the 90-day investment horizon Kezar Life Sciences is expected to under-perform the Helius Medical. But the stock apears to be less risky and, when comparing its historical volatility, Kezar Life Sciences is 1.82 times less risky than Helius Medical. The stock trades about -0.04 of its potential returns per unit of risk. The Helius Medical Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 48.00 in Helius Medical Technologies on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Helius Medical Technologies or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kezar Life Sciences vs. Helius Medical Technologies
Performance |
| Timeline |
| Kezar Life Sciences |
| Helius Medical Techn |
Kezar Life and Helius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kezar Life and Helius Medical
The main advantage of trading using opposite Kezar Life and Helius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kezar Life position performs unexpectedly, Helius Medical 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 Helius Medical will offset losses from the drop in Helius Medical's long position.| Kezar Life vs. Eliem Therapeutics | Kezar Life vs. Scpharmaceuticals | Kezar Life vs. Milestone Pharmaceuticals | Kezar Life vs. Seres Therapeutics |
| Helius Medical vs. Nuwellis | Helius Medical vs. ReShape Lifesciences | Helius Medical vs. Bone Biologics Corp | Helius Medical vs. SINTX Technologies |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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