Correlation Between Surrozen Warrant and Kymera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Surrozen Warrant and Kymera Therapeutics 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 Warrant and Kymera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surrozen Warrant and Kymera Therapeutics, you can compare the effects of market volatilities on Surrozen Warrant and Kymera Therapeutics 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 Warrant with a short position of Kymera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surrozen Warrant and Kymera Therapeutics.
Diversification Opportunities for Surrozen Warrant and Kymera Therapeutics
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surrozen and Kymera is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Surrozen Warrant and Kymera Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kymera Therapeutics and Surrozen Warrant 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 Warrant are associated (or correlated) with Kymera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kymera Therapeutics has no effect on the direction of Surrozen Warrant i.e., Surrozen Warrant and Kymera Therapeutics go up and down completely randomly.
Pair Corralation between Surrozen Warrant and Kymera Therapeutics
Assuming the 90 days horizon Surrozen Warrant is expected to generate 10.92 times more return on investment than Kymera Therapeutics. However, Surrozen Warrant is 10.92 times more volatile than Kymera Therapeutics. It trades about 0.19 of its potential returns per unit of risk. Kymera Therapeutics is currently generating about 0.01 per unit of risk. If you would invest 3.25 in Surrozen Warrant on November 2, 2024 and sell it today you would earn a total of 0.47 from holding Surrozen Warrant or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.42% |
| Values | Daily Returns |
Surrozen Warrant vs. Kymera Therapeutics
Performance |
| Timeline |
| Surrozen Warrant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Kymera Therapeutics |
Surrozen Warrant and Kymera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surrozen Warrant and Kymera Therapeutics
The main advantage of trading using opposite Surrozen Warrant and Kymera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surrozen Warrant position performs unexpectedly, Kymera Therapeutics 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 Kymera Therapeutics will offset losses from the drop in Kymera Therapeutics' long position.| Surrozen Warrant vs. Surrozen | Surrozen Warrant vs. Celularity | Surrozen Warrant vs. Quantum Si incorporated | Surrozen Warrant vs. Humacyte |
| Kymera Therapeutics vs. Foghorn Therapeutics | Kymera Therapeutics vs. Shattuck Labs | Kymera Therapeutics vs. Monte Rosa Therapeutics | Kymera Therapeutics vs. Nurix Therapeutics |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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