Correlation Between MeiraGTx Holdings and Krystal Biotech
Can any of the company-specific risk be diversified away by investing in both MeiraGTx Holdings and Krystal Biotech 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 MeiraGTx Holdings and Krystal Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MeiraGTx Holdings PLC and Krystal Biotech, you can compare the effects of market volatilities on MeiraGTx Holdings and Krystal Biotech 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 MeiraGTx Holdings with a short position of Krystal Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeiraGTx Holdings and Krystal Biotech.
Diversification Opportunities for MeiraGTx Holdings and Krystal Biotech
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MeiraGTx and Krystal is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MeiraGTx Holdings PLC and Krystal Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krystal Biotech and MeiraGTx Holdings 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 MeiraGTx Holdings PLC are associated (or correlated) with Krystal Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krystal Biotech has no effect on the direction of MeiraGTx Holdings i.e., MeiraGTx Holdings and Krystal Biotech go up and down completely randomly.
Pair Corralation between MeiraGTx Holdings and Krystal Biotech
Given the investment horizon of 90 days MeiraGTx Holdings is expected to generate 3.6 times less return on investment than Krystal Biotech. In addition to that, MeiraGTx Holdings is 1.23 times more volatile than Krystal Biotech. It trades about 0.03 of its total potential returns per unit of risk. Krystal Biotech is currently generating about 0.13 per unit of volatility. If you would invest 17,689 in Krystal Biotech on August 27, 2024 and sell it today you would earn a total of 1,351 from holding Krystal Biotech or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeiraGTx Holdings PLC vs. Krystal Biotech
Performance |
| Timeline |
| MeiraGTx Holdings PLC |
| Krystal Biotech |
MeiraGTx Holdings and Krystal Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeiraGTx Holdings and Krystal Biotech
The main advantage of trading using opposite MeiraGTx Holdings and Krystal Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeiraGTx Holdings position performs unexpectedly, Krystal Biotech 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 Krystal Biotech will offset losses from the drop in Krystal Biotech's long position.| MeiraGTx Holdings vs. Ideaya Biosciences | MeiraGTx Holdings vs. AnaptysBio | MeiraGTx Holdings vs. Keros Therapeutics | MeiraGTx Holdings vs. Uniqure NV |
| Krystal Biotech vs. Eliem Therapeutics | Krystal Biotech vs. HCW Biologics | Krystal Biotech vs. Scpharmaceuticals | Krystal Biotech vs. Milestone Pharmaceuticals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |