Correlation Between Shattuck Labs and Kronos Bio
Can any of the company-specific risk be diversified away by investing in both Shattuck Labs 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 Shattuck Labs and Kronos Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shattuck Labs and Kronos Bio, you can compare the effects of market volatilities on Shattuck Labs 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 Shattuck Labs with a short position of Kronos Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shattuck Labs and Kronos Bio.
Diversification Opportunities for Shattuck Labs and Kronos Bio
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shattuck and Kronos is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shattuck Labs and Kronos Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kronos Bio and Shattuck Labs 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 Shattuck Labs 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 Shattuck Labs i.e., Shattuck Labs and Kronos Bio go up and down completely randomly.
Pair Corralation between Shattuck Labs and Kronos Bio
Given the investment horizon of 90 days Shattuck Labs is expected to under-perform the Kronos Bio. In addition to that, Shattuck Labs is 1.38 times more volatile than Kronos Bio. It trades about -0.09 of its total potential returns per unit of risk. Kronos Bio is currently generating about 0.0 per unit of volatility. If you would invest 97.00 in Kronos Bio on September 1, 2024 and sell it today you would lose (2.00) from holding Kronos Bio or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shattuck Labs vs. Kronos Bio
Performance |
| Timeline |
| Shattuck Labs |
| Kronos Bio |
Shattuck Labs and Kronos Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shattuck Labs and Kronos Bio
The main advantage of trading using opposite Shattuck Labs and Kronos Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shattuck Labs 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.| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Eliem Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics |
| Kronos Bio vs. Tff Pharmaceuticals | Kronos Bio vs. Eliem Therapeutics | Kronos Bio vs. Inhibrx | Kronos Bio vs. Enliven 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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