Correlation Between Kezar Life and 60 Degrees
Can any of the company-specific risk be diversified away by investing in both Kezar Life and 60 Degrees 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 60 Degrees 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 60 Degrees Pharmaceuticals,, you can compare the effects of market volatilities on Kezar Life and 60 Degrees 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 60 Degrees. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kezar Life and 60 Degrees.
Diversification Opportunities for Kezar Life and 60 Degrees
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kezar and SXTPW is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kezar Life Sciences and 60 Degrees Pharmaceuticals, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 60 Degrees Pharmaceu 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 60 Degrees. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 60 Degrees Pharmaceu has no effect on the direction of Kezar Life i.e., Kezar Life and 60 Degrees go up and down completely randomly.
Pair Corralation between Kezar Life and 60 Degrees
Considering the 90-day investment horizon Kezar Life Sciences is expected to under-perform the 60 Degrees. But the stock apears to be less risky and, when comparing its historical volatility, Kezar Life Sciences is 23.26 times less risky than 60 Degrees. The stock trades about -0.08 of its potential returns per unit of risk. The 60 Degrees Pharmaceuticals, is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1.52 in 60 Degrees Pharmaceuticals, on August 25, 2024 and sell it today you would earn a total of 0.48 from holding 60 Degrees Pharmaceuticals, or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.52% |
| Values | Daily Returns |
Kezar Life Sciences vs. 60 Degrees Pharmaceuticals,
Performance |
| Timeline |
| Kezar Life Sciences |
| 60 Degrees Pharmaceu |
Kezar Life and 60 Degrees Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kezar Life and 60 Degrees
The main advantage of trading using opposite Kezar Life and 60 Degrees positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kezar Life position performs unexpectedly, 60 Degrees 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 60 Degrees will offset losses from the drop in 60 Degrees' long position.| Kezar Life vs. Century Therapeutics | Kezar Life vs. Mineralys Therapeutics, Common | Kezar Life vs. Nkarta Inc | Kezar Life vs. Surrozen |
| 60 Degrees vs. Eliem Therapeutics | 60 Degrees vs. HCW Biologics | 60 Degrees vs. RenovoRx | 60 Degrees vs. Scpharmaceuticals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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