Correlation Between MeiraGTx Holdings and Kura Oncology
Can any of the company-specific risk be diversified away by investing in both MeiraGTx Holdings and Kura Oncology 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 Kura Oncology 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 Kura Oncology, you can compare the effects of market volatilities on MeiraGTx Holdings and Kura Oncology 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 Kura Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeiraGTx Holdings and Kura Oncology.
Diversification Opportunities for MeiraGTx Holdings and Kura Oncology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between MeiraGTx and Kura is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding MeiraGTx Holdings PLC and Kura Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Oncology 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 Kura Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Oncology has no effect on the direction of MeiraGTx Holdings i.e., MeiraGTx Holdings and Kura Oncology go up and down completely randomly.
Pair Corralation between MeiraGTx Holdings and Kura Oncology
Given the investment horizon of 90 days MeiraGTx Holdings PLC is expected to generate 0.96 times more return on investment than Kura Oncology. However, MeiraGTx Holdings PLC is 1.05 times less risky than Kura Oncology. It trades about 0.06 of its potential returns per unit of risk. Kura Oncology is currently generating about -0.12 per unit of risk. If you would invest 627.00 in MeiraGTx Holdings PLC on November 2, 2024 and sell it today you would earn a total of 16.00 from holding MeiraGTx Holdings PLC or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeiraGTx Holdings PLC vs. Kura Oncology
Performance |
| Timeline |
| MeiraGTx Holdings PLC |
| Kura Oncology |
MeiraGTx Holdings and Kura Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeiraGTx Holdings and Kura Oncology
The main advantage of trading using opposite MeiraGTx Holdings and Kura Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeiraGTx Holdings position performs unexpectedly, Kura Oncology 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 Kura Oncology will offset losses from the drop in Kura Oncology's long position.| MeiraGTx Holdings vs. Ideaya Biosciences | MeiraGTx Holdings vs. AnaptysBio | MeiraGTx Holdings vs. Keros Therapeutics | MeiraGTx Holdings vs. Uniqure NV |
| Kura Oncology vs. Protagonist Therapeutics | Kura Oncology vs. Merus BV | Kura Oncology vs. Replimune Group | Kura Oncology vs. Kalvista 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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