Correlation Between Kezar Life and Immatics
Can any of the company-specific risk be diversified away by investing in both Kezar Life and Immatics 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 Immatics 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 Immatics NV, you can compare the effects of market volatilities on Kezar Life and Immatics 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 Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kezar Life and Immatics.
Diversification Opportunities for Kezar Life and Immatics
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kezar and Immatics is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kezar Life Sciences and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV 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 Immatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics NV has no effect on the direction of Kezar Life i.e., Kezar Life and Immatics go up and down completely randomly.
Pair Corralation between Kezar Life and Immatics
Considering the 90-day investment horizon Kezar Life Sciences is expected to generate 1.07 times more return on investment than Immatics. However, Kezar Life is 1.07 times more volatile than Immatics NV. It trades about -0.19 of its potential returns per unit of risk. Immatics NV is currently generating about -0.31 per unit of risk. If you would invest 819.00 in Kezar Life Sciences on August 31, 2024 and sell it today you would lose (79.00) from holding Kezar Life Sciences or give up 9.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kezar Life Sciences vs. Immatics NV
Performance |
| Timeline |
| Kezar Life Sciences |
| Immatics NV |
Kezar Life and Immatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kezar Life and Immatics
The main advantage of trading using opposite Kezar Life and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kezar Life position performs unexpectedly, Immatics 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 Immatics will offset losses from the drop in Immatics' long position.| Kezar Life vs. Cue Biopharma | Kezar Life vs. Tff Pharmaceuticals | Kezar Life vs. Eliem Therapeutics | Kezar Life vs. Inhibrx |
| Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. Bioatla | Immatics vs. Aerovate 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 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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