Correlation Between Kezar Life and Exicure
Can any of the company-specific risk be diversified away by investing in both Kezar Life and Exicure 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 Exicure 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 Exicure, you can compare the effects of market volatilities on Kezar Life and Exicure 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 Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kezar Life and Exicure.
Diversification Opportunities for Kezar Life and Exicure
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kezar and Exicure is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kezar Life Sciences and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Kezar Life i.e., Kezar Life and Exicure go up and down completely randomly.
Pair Corralation between Kezar Life and Exicure
Considering the 90-day investment horizon Kezar Life Sciences is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Kezar Life Sciences is 8.3 times less risky than Exicure. The stock trades about -0.08 of its potential returns per unit of risk. The Exicure is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 233.00 in Exicure on August 25, 2024 and sell it today you would earn a total of 1,605 from holding Exicure or generate 688.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kezar Life Sciences vs. Exicure
Performance |
| Timeline |
| Kezar Life Sciences |
| Exicure |
Kezar Life and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kezar Life and Exicure
The main advantage of trading using opposite Kezar Life and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kezar Life position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.| Kezar Life vs. Century Therapeutics | Kezar Life vs. Mineralys Therapeutics, Common | Kezar Life vs. Nkarta Inc | Kezar Life vs. Surrozen |
| Exicure vs. Ikena Oncology | Exicure vs. Eliem Therapeutics | Exicure vs. HCW Biologics | Exicure vs. RenovoRx |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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