Correlation Between Benitec Biopharma and Crinetics Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Benitec Biopharma and Crinetics Pharmaceuticals 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 Benitec Biopharma and Crinetics Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benitec Biopharma Ltd and Crinetics Pharmaceuticals, you can compare the effects of market volatilities on Benitec Biopharma and Crinetics Pharmaceuticals 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 Benitec Biopharma with a short position of Crinetics Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benitec Biopharma and Crinetics Pharmaceuticals.
Diversification Opportunities for Benitec Biopharma and Crinetics Pharmaceuticals
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Benitec and Crinetics is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Benitec Biopharma Ltd and Crinetics Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crinetics Pharmaceuticals and Benitec Biopharma 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 Benitec Biopharma Ltd are associated (or correlated) with Crinetics Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crinetics Pharmaceuticals has no effect on the direction of Benitec Biopharma i.e., Benitec Biopharma and Crinetics Pharmaceuticals go up and down completely randomly.
Pair Corralation between Benitec Biopharma and Crinetics Pharmaceuticals
Given the investment horizon of 90 days Benitec Biopharma Ltd is expected to generate 1.8 times more return on investment than Crinetics Pharmaceuticals. However, Benitec Biopharma is 1.8 times more volatile than Crinetics Pharmaceuticals. It trades about 0.07 of its potential returns per unit of risk. Crinetics Pharmaceuticals is currently generating about 0.08 per unit of risk. If you would invest 755.00 in Benitec Biopharma Ltd on August 28, 2024 and sell it today you would earn a total of 260.00 from holding Benitec Biopharma Ltd or generate 34.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benitec Biopharma Ltd vs. Crinetics Pharmaceuticals
Performance |
| Timeline |
| Benitec Biopharma |
| Crinetics Pharmaceuticals |
Benitec Biopharma and Crinetics Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benitec Biopharma and Crinetics Pharmaceuticals
The main advantage of trading using opposite Benitec Biopharma and Crinetics Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benitec Biopharma position performs unexpectedly, Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals will offset losses from the drop in Crinetics Pharmaceuticals' long position.| Benitec Biopharma vs. Bio Path Holdings | Benitec Biopharma vs. Capricor Therapeutics | Benitec Biopharma vs. NextCure | Benitec Biopharma vs. Aileron Therapeutics |
| Crinetics Pharmaceuticals vs. Eliem Therapeutics | Crinetics Pharmaceuticals vs. Scpharmaceuticals | Crinetics Pharmaceuticals vs. Milestone Pharmaceuticals | Crinetics Pharmaceuticals vs. Seres 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |