Correlation Between Shattuck Labs and Kymera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Shattuck Labs 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 Shattuck Labs and Kymera Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shattuck Labs and Kymera Therapeutics, you can compare the effects of market volatilities on Shattuck Labs 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 Shattuck Labs with a short position of Kymera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shattuck Labs and Kymera Therapeutics.
Diversification Opportunities for Shattuck Labs and Kymera Therapeutics
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shattuck and Kymera is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shattuck Labs and Kymera Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kymera Therapeutics 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 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 Shattuck Labs i.e., Shattuck Labs and Kymera Therapeutics go up and down completely randomly.
Pair Corralation between Shattuck Labs and Kymera Therapeutics
Given the investment horizon of 90 days Shattuck Labs is expected to generate 1.17 times more return on investment than Kymera Therapeutics. However, Shattuck Labs is 1.17 times more volatile than Kymera Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Kymera Therapeutics is currently generating about 0.01 per unit of risk. If you would invest 121.00 in Shattuck Labs on November 2, 2024 and sell it today you would earn a total of 4.00 from holding Shattuck Labs or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shattuck Labs vs. Kymera Therapeutics
Performance |
| Timeline |
| Shattuck Labs |
| Kymera Therapeutics |
Shattuck Labs and Kymera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shattuck Labs and Kymera Therapeutics
The main advantage of trading using opposite Shattuck Labs and Kymera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shattuck Labs 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.| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics | Shattuck Labs vs. Foghorn Therapeutics |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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