Correlation Between Kezar Life and Immunic
Can any of the company-specific risk be diversified away by investing in both Kezar Life and Immunic 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 Immunic 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 Immunic, you can compare the effects of market volatilities on Kezar Life and Immunic 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 Immunic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kezar Life and Immunic.
Diversification Opportunities for Kezar Life and Immunic
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kezar and Immunic is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kezar Life Sciences and Immunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunic 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 Immunic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunic has no effect on the direction of Kezar Life i.e., Kezar Life and Immunic go up and down completely randomly.
Pair Corralation between Kezar Life and Immunic
Considering the 90-day investment horizon Kezar Life Sciences is expected to under-perform the Immunic. But the stock apears to be less risky and, when comparing its historical volatility, Kezar Life Sciences is 1.05 times less risky than Immunic. The stock trades about -0.04 of its potential returns per unit of risk. The Immunic is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 163.00 in Immunic on August 26, 2024 and sell it today you would lose (53.00) from holding Immunic or give up 32.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kezar Life Sciences vs. Immunic
Performance |
| Timeline |
| Kezar Life Sciences |
| Immunic |
Kezar Life and Immunic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kezar Life and Immunic
The main advantage of trading using opposite Kezar Life and Immunic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kezar Life position performs unexpectedly, Immunic 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 Immunic will offset losses from the drop in Immunic's long position.| Kezar Life vs. Century Therapeutics | Kezar Life vs. Mineralys Therapeutics, Common | Kezar Life vs. Nkarta Inc | Kezar Life vs. Surrozen |
| Immunic vs. Generation Bio Co | Immunic vs. Kronos Bio | Immunic vs. Erasca Inc | Immunic vs. C4 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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