Correlation Between Zura Bio and Kronos Bio
Can any of the company-specific risk be diversified away by investing in both Zura Bio 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 Zura Bio and Kronos Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and Kronos Bio, you can compare the effects of market volatilities on Zura Bio 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 Zura Bio with a short position of Kronos Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Kronos Bio.
Diversification Opportunities for Zura Bio and Kronos Bio
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zura and Kronos is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Kronos Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kronos Bio and Zura Bio 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 Zura Bio Limited 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 Zura Bio i.e., Zura Bio and Kronos Bio go up and down completely randomly.
Pair Corralation between Zura Bio and Kronos Bio
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the Kronos Bio. In addition to that, Zura Bio is 1.11 times more volatile than Kronos Bio. It trades about -0.03 of its total potential returns per unit of risk. Kronos Bio is currently generating about 0.02 per unit of volatility. If you would invest 106.00 in Kronos Bio on November 5, 2024 and sell it today you would lose (8.00) from holding Kronos Bio or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zura Bio Limited vs. Kronos Bio
Performance |
| Timeline |
| Zura Bio Limited |
| Kronos Bio |
Zura Bio and Kronos Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and Kronos Bio
The main advantage of trading using opposite Zura Bio and Kronos Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio 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.| Zura Bio vs. NetSol Technologies | Zura Bio vs. ServiceNow | Zura Bio vs. Primo Brands | Zura Bio vs. Kingdee International Software |
| Kronos Bio vs. Cyclerion Therapeutics | Kronos Bio vs. Larimar Therapeutics | Kronos Bio vs. Addex Therapeutics | Kronos Bio vs. Achilles Therapeutics PLC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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