Correlation Between Kezar Life and Vaxart
Can any of the company-specific risk be diversified away by investing in both Kezar Life and Vaxart 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 Vaxart 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 Vaxart Inc, you can compare the effects of market volatilities on Kezar Life and Vaxart 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 Vaxart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kezar Life and Vaxart.
Diversification Opportunities for Kezar Life and Vaxart
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kezar and Vaxart is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kezar Life Sciences and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart 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 Vaxart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxart Inc has no effect on the direction of Kezar Life i.e., Kezar Life and Vaxart go up and down completely randomly.
Pair Corralation between Kezar Life and Vaxart
Considering the 90-day investment horizon Kezar Life Sciences is expected to under-perform the Vaxart. But the stock apears to be less risky and, when comparing its historical volatility, Kezar Life Sciences is 1.19 times less risky than Vaxart. The stock trades about -0.07 of its potential returns per unit of risk. The Vaxart Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 103.00 in Vaxart Inc on August 30, 2024 and sell it today you would lose (42.00) from holding Vaxart Inc or give up 40.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kezar Life Sciences vs. Vaxart Inc
Performance |
| Timeline |
| Kezar Life Sciences |
| Vaxart Inc |
Kezar Life and Vaxart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kezar Life and Vaxart
The main advantage of trading using opposite Kezar Life and Vaxart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kezar Life position performs unexpectedly, Vaxart 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 Vaxart will offset losses from the drop in Vaxart's long position.| Kezar Life vs. Century Therapeutics | Kezar Life vs. Mineralys Therapeutics, Common | Kezar Life vs. Nkarta Inc | Kezar Life vs. Surrozen |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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