Correlation Between Keros Therapeutics and Uniqure NV

Can any of the company-specific risk be diversified away by investing in both Keros Therapeutics and Uniqure NV 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 Keros Therapeutics and Uniqure NV into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Keros Therapeutics and Uniqure NV, you can compare the effects of market volatilities on Keros Therapeutics and Uniqure NV 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 Keros Therapeutics with a short position of Uniqure NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keros Therapeutics and Uniqure NV.

Diversification Opportunities for Keros Therapeutics and Uniqure NV

0.72

Correlation Coefficient

Keros Therapeutics  Uniqure NV

Poor diversification

The 3 months correlation between Keros and Uniqure is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Keros Therapeutics and Uniqure NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniqure NV and Keros Therapeutics 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 Keros Therapeutics are associated (or correlated) with Uniqure NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniqure NV has no effect on the direction of Keros Therapeutics i.e., Keros Therapeutics and Uniqure NV go up and down completely randomly.

Pair Corralation between Keros Therapeutics and Uniqure NV

Given the investment horizon of 90 days Keros Therapeutics is expected to under-perform the Uniqure NV. But the stock apears to be less risky and, when comparing its historical volatility, Keros Therapeutics is 1.45 times less risky than Uniqure NV. The stock trades about -0.14 of its potential returns per unit of risk. The Uniqure NV is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  1,722  in Uniqure NV on December 29, 2024 and sell it today you would lose (409.00) from holding Uniqure NV or give up 23.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Keros Therapeutics  vs.  Uniqure NV

Keros Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Keros Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Uniqure NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Uniqure NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Keros Therapeutics and Uniqure NV

The main advantage of trading using opposite Keros Therapeutics and Uniqure NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keros Therapeutics position performs unexpectedly, Uniqure NV 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 Uniqure NV will offset losses from the drop in Uniqure NV's long position.

The idea behind Keros Therapeutics and Uniqure NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.