Correlation Between Krystal Biotech and Akeso,

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

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

Diversification Opportunities for Krystal Biotech and Akeso,

-0.47

Correlation Coefficient

Krystal Biotech  Akeso,

Very good diversification

The 3 months correlation between Krystal and Akeso, is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Krystal Biotech and Akeso, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akeso, Inc and Krystal Biotech 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 Krystal Biotech are associated (or correlated) with Akeso,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akeso, Inc has no effect on the direction of Krystal Biotech i.e., Krystal Biotech and Akeso, go up and down completely randomly.

Pair Corralation between Krystal Biotech and Akeso,

Given the investment horizon of 90 days Krystal Biotech is expected to generate 24.84 times less return on investment than Akeso,. But when comparing it to its historical volatility, Krystal Biotech is 2.93 times less risky than Akeso,. It trades about 0.02 of its potential returns per unit of risk. Akeso, Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  568.00  in Akeso, Inc on August 30, 2024 and sell it today you would earn a total of  392.00  from holding Akeso, Inc or generate 69.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Krystal Biotech  vs.  Akeso, Inc

Krystal Biotech

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Krystal Biotech are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Krystal Biotech is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Akeso, Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Akeso, Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Akeso, reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Krystal Biotech and Akeso,

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

The idea behind Krystal Biotech and Akeso, Inc 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.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.