Correlation Between Aerovate Therapeutics and Cullinan Oncology
Can any of the company-specific risk be diversified away by investing in both Aerovate Therapeutics and Cullinan Oncology 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 Aerovate Therapeutics and Cullinan Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerovate Therapeutics and Cullinan Oncology LLC, you can compare the effects of market volatilities on Aerovate Therapeutics and Cullinan Oncology 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 Aerovate Therapeutics with a short position of Cullinan Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerovate Therapeutics and Cullinan Oncology.
Diversification Opportunities for Aerovate Therapeutics and Cullinan Oncology
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aerovate and Cullinan is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aerovate Therapeutics and Cullinan Oncology LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullinan Oncology LLC and Aerovate 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 Aerovate Therapeutics are associated (or correlated) with Cullinan Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullinan Oncology LLC has no effect on the direction of Aerovate Therapeutics i.e., Aerovate Therapeutics and Cullinan Oncology go up and down completely randomly.
Pair Corralation between Aerovate Therapeutics and Cullinan Oncology
Given the investment horizon of 90 days Aerovate Therapeutics is expected to generate 0.68 times more return on investment than Cullinan Oncology. However, Aerovate Therapeutics is 1.46 times less risky than Cullinan Oncology. It trades about -0.04 of its potential returns per unit of risk. Cullinan Oncology LLC is currently generating about -0.16 per unit of risk. If you would invest 269.00 in Aerovate Therapeutics on November 2, 2024 and sell it today you would lose (7.00) from holding Aerovate Therapeutics or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerovate Therapeutics vs. Cullinan Oncology LLC
Performance |
| Timeline |
| Aerovate Therapeutics |
| Cullinan Oncology LLC |
Aerovate Therapeutics and Cullinan Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerovate Therapeutics and Cullinan Oncology
The main advantage of trading using opposite Aerovate Therapeutics and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerovate Therapeutics position performs unexpectedly, Cullinan Oncology 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 Cullinan Oncology will offset losses from the drop in Cullinan Oncology's long position.| Aerovate Therapeutics vs. Adagene | Aerovate Therapeutics vs. Acrivon Therapeutics, Common | Aerovate Therapeutics vs. Rezolute | Aerovate Therapeutics vs. AN2 Therapeutics |
| Cullinan Oncology vs. Bolt Biotherapeutics | Cullinan Oncology vs. Day One Biopharmaceuticals | Cullinan Oncology vs. Lyra Therapeutics | Cullinan Oncology vs. Autolus 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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