Correlation Between Surrozen and Kezar Life
Can any of the company-specific risk be diversified away by investing in both Surrozen and Kezar Life 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 Surrozen and Kezar Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surrozen and Kezar Life Sciences, you can compare the effects of market volatilities on Surrozen and Kezar Life 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 Surrozen with a short position of Kezar Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surrozen and Kezar Life.
Diversification Opportunities for Surrozen and Kezar Life
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Surrozen and Kezar is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Surrozen and Kezar Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kezar Life Sciences and Surrozen 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 Surrozen are associated (or correlated) with Kezar Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kezar Life Sciences has no effect on the direction of Surrozen i.e., Surrozen and Kezar Life go up and down completely randomly.
Pair Corralation between Surrozen and Kezar Life
Given the investment horizon of 90 days Surrozen is expected to generate 2.81 times less return on investment than Kezar Life. In addition to that, Surrozen is 1.13 times more volatile than Kezar Life Sciences. It trades about 0.01 of its total potential returns per unit of risk. Kezar Life Sciences is currently generating about 0.03 per unit of volatility. If you would invest 712.00 in Kezar Life Sciences on August 25, 2024 and sell it today you would earn a total of 38.00 from holding Kezar Life Sciences or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surrozen vs. Kezar Life Sciences
Performance |
| Timeline |
| Surrozen |
| Kezar Life Sciences |
Surrozen and Kezar Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surrozen and Kezar Life
The main advantage of trading using opposite Surrozen and Kezar Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surrozen position performs unexpectedly, Kezar Life 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 Kezar Life will offset losses from the drop in Kezar Life's long position.| Surrozen vs. Eliem Therapeutics | Surrozen vs. HCW Biologics | Surrozen vs. RenovoRx | Surrozen vs. Scpharmaceuticals |
| Kezar Life vs. Century Therapeutics | Kezar Life vs. Mineralys Therapeutics, Common | Kezar Life vs. Nkarta Inc | Kezar Life vs. Surrozen |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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