Correlation Between Kezar Life and OmniAb
Can any of the company-specific risk be diversified away by investing in both Kezar Life and OmniAb 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 OmniAb 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 OmniAb Inc, you can compare the effects of market volatilities on Kezar Life and OmniAb 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 OmniAb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kezar Life and OmniAb.
Diversification Opportunities for Kezar Life and OmniAb
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kezar and OmniAb is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kezar Life Sciences and OmniAb Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OmniAb Inc 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 OmniAb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OmniAb Inc has no effect on the direction of Kezar Life i.e., Kezar Life and OmniAb go up and down completely randomly.
Pair Corralation between Kezar Life and OmniAb
Considering the 90-day investment horizon Kezar Life Sciences is expected to under-perform the OmniAb. In addition to that, Kezar Life is 1.51 times more volatile than OmniAb Inc. It trades about -0.07 of its total potential returns per unit of risk. OmniAb Inc is currently generating about 0.02 per unit of volatility. If you would invest 355.00 in OmniAb Inc on August 30, 2024 and sell it today you would earn a total of 35.00 from holding OmniAb Inc or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kezar Life Sciences vs. OmniAb Inc
Performance |
| Timeline |
| Kezar Life Sciences |
| OmniAb Inc |
Kezar Life and OmniAb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kezar Life and OmniAb
The main advantage of trading using opposite Kezar Life and OmniAb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kezar Life position performs unexpectedly, OmniAb 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 OmniAb will offset losses from the drop in OmniAb's long position.| Kezar Life vs. Century Therapeutics | Kezar Life vs. Mineralys Therapeutics, Common | Kezar Life vs. Nkarta Inc | Kezar Life vs. Surrozen |
| OmniAb vs. Legend Biotech Corp | OmniAb vs. Verona Pharma PLC | OmniAb vs. Ideaya Biosciences | OmniAb vs. Iteos 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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