Correlation Between Atara Biotherapeutics and Caribou Biosciences
Can any of the company-specific risk be diversified away by investing in both Atara Biotherapeutics and Caribou Biosciences 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 Atara Biotherapeutics and Caribou Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atara Biotherapeutics and Caribou Biosciences, you can compare the effects of market volatilities on Atara Biotherapeutics and Caribou Biosciences 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 Atara Biotherapeutics with a short position of Caribou Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atara Biotherapeutics and Caribou Biosciences.
Diversification Opportunities for Atara Biotherapeutics and Caribou Biosciences
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atara and Caribou is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Atara Biotherapeutics and Caribou Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caribou Biosciences and Atara Biotherapeutics 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 Atara Biotherapeutics are associated (or correlated) with Caribou Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caribou Biosciences has no effect on the direction of Atara Biotherapeutics i.e., Atara Biotherapeutics and Caribou Biosciences go up and down completely randomly.
Pair Corralation between Atara Biotherapeutics and Caribou Biosciences
Given the investment horizon of 90 days Atara Biotherapeutics is expected to generate 1.45 times more return on investment than Caribou Biosciences. However, Atara Biotherapeutics is 1.45 times more volatile than Caribou Biosciences. It trades about -0.01 of its potential returns per unit of risk. Caribou Biosciences is currently generating about -0.02 per unit of risk. If you would invest 13,500 in Atara Biotherapeutics on August 27, 2024 and sell it today you would lose (12,288) from holding Atara Biotherapeutics or give up 91.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atara Biotherapeutics vs. Caribou Biosciences
Performance |
| Timeline |
| Atara Biotherapeutics |
| Caribou Biosciences |
Atara Biotherapeutics and Caribou Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atara Biotherapeutics and Caribou Biosciences
The main advantage of trading using opposite Atara Biotherapeutics and Caribou Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atara Biotherapeutics position performs unexpectedly, Caribou Biosciences 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 Caribou Biosciences will offset losses from the drop in Caribou Biosciences' long position.| Atara Biotherapeutics vs. Fate Therapeutics | Atara Biotherapeutics vs. Sana Biotechnology | Atara Biotherapeutics vs. Caribou Biosciences | Atara Biotherapeutics vs. Arcus Biosciences |
| Caribou Biosciences vs. Intellia Therapeutics | Caribou Biosciences vs. Editas Medicine | Caribou Biosciences vs. Crispr Therapeutics AG | Caribou Biosciences vs. Verve 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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