Correlation Between Exicure and Kezar Life
Can any of the company-specific risk be diversified away by investing in both Exicure 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 Exicure and Kezar Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exicure and Kezar Life Sciences, you can compare the effects of market volatilities on Exicure 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 Exicure with a short position of Kezar Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exicure and Kezar Life.
Diversification Opportunities for Exicure and Kezar Life
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Exicure and Kezar is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Exicure 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 Exicure 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 Exicure 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 Exicure i.e., Exicure and Kezar Life go up and down completely randomly.
Pair Corralation between Exicure and Kezar Life
Given the investment horizon of 90 days Exicure is expected to generate 8.6 times more return on investment than Kezar Life. However, Exicure is 8.6 times more volatile than Kezar Life Sciences. It trades about 0.53 of its potential returns per unit of risk. Kezar Life Sciences is currently generating about -0.04 per unit of risk. If you would invest 241.00 in Exicure on August 29, 2024 and sell it today you would earn a total of 2,528 from holding Exicure or generate 1048.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exicure vs. Kezar Life Sciences
Performance |
| Timeline |
| Exicure |
| Kezar Life Sciences |
Exicure and Kezar Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exicure and Kezar Life
The main advantage of trading using opposite Exicure and Kezar Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exicure 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.| Exicure vs. Eliem Therapeutics | Exicure vs. Scpharmaceuticals | Exicure vs. Milestone Pharmaceuticals | Exicure vs. Seres Therapeutics |
| Kezar Life vs. Eliem Therapeutics | Kezar Life vs. Scpharmaceuticals | Kezar Life vs. Milestone Pharmaceuticals | Kezar Life vs. Seres 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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