Correlation Between Sellas Life and Kronos Bio
Can any of the company-specific risk be diversified away by investing in both Sellas Life and Kronos Bio 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 Sellas Life and Kronos Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Kronos Bio, you can compare the effects of market volatilities on Sellas Life and Kronos Bio 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 Sellas Life with a short position of Kronos Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Kronos Bio.
Diversification Opportunities for Sellas Life and Kronos Bio
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sellas and Kronos is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Kronos Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kronos Bio and Sellas 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 Sellas Life Sciences are associated (or correlated) with Kronos Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kronos Bio has no effect on the direction of Sellas Life i.e., Sellas Life and Kronos Bio go up and down completely randomly.
Pair Corralation between Sellas Life and Kronos Bio
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 1.15 times more return on investment than Kronos Bio. However, Sellas Life is 1.15 times more volatile than Kronos Bio. It trades about 0.02 of its potential returns per unit of risk. Kronos Bio is currently generating about 0.0 per unit of risk. If you would invest 138.00 in Sellas Life Sciences on December 4, 2024 and sell it today you would lose (20.00) from holding Sellas Life Sciences or give up 14.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. Kronos Bio
Performance |
| Timeline |
| Sellas Life Sciences |
| Kronos Bio |
Sellas Life and Kronos Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Kronos Bio
The main advantage of trading using opposite Sellas Life and Kronos Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, Kronos Bio 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 Kronos Bio will offset losses from the drop in Kronos Bio's long position.| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
| Kronos Bio vs. Cyclerion Therapeutics | Kronos Bio vs. Larimar Therapeutics | Kronos Bio vs. Addex Therapeutics | Kronos Bio vs. Achilles Therapeutics PLC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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