Correlation Between Newhydrogen and Krystal Biotech
Can any of the company-specific risk be diversified away by investing in both Newhydrogen 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 Newhydrogen and Krystal Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newhydrogen and Krystal Biotech, you can compare the effects of market volatilities on Newhydrogen 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 Newhydrogen with a short position of Krystal Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newhydrogen and Krystal Biotech.
Diversification Opportunities for Newhydrogen and Krystal Biotech
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newhydrogen and Krystal is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Newhydrogen and Krystal Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krystal Biotech and Newhydrogen 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 Newhydrogen 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 Newhydrogen i.e., Newhydrogen and Krystal Biotech go up and down completely randomly.
Pair Corralation between Newhydrogen and Krystal Biotech
Given the investment horizon of 90 days Newhydrogen is expected to under-perform the Krystal Biotech. In addition to that, Newhydrogen is 2.17 times more volatile than Krystal Biotech. It trades about 0.0 of its total potential returns per unit of risk. Krystal Biotech is currently generating about 0.05 per unit of volatility. If you would invest 8,021 in Krystal Biotech on October 25, 2024 and sell it today you would earn a total of 7,485 from holding Krystal Biotech or generate 93.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Newhydrogen vs. Krystal Biotech
Performance |
| Timeline |
| Newhydrogen |
| Krystal Biotech |
Newhydrogen and Krystal Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newhydrogen and Krystal Biotech
The main advantage of trading using opposite Newhydrogen and Krystal Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newhydrogen 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.| Newhydrogen vs. Solar Integrated Roofing | Newhydrogen vs. Ascent Solar Technologies, | Newhydrogen vs. SunHydrogen | Newhydrogen vs. Solar Alliance Energy |
| Krystal Biotech vs. Surrozen | Krystal Biotech vs. Armata Pharmaceuticals | Krystal Biotech vs. Pasithea Therapeutics Corp | Krystal Biotech vs. Aditxt Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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