Correlation Between Cidara Therapeutics and CohBar
Can any of the company-specific risk be diversified away by investing in both Cidara Therapeutics and CohBar 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 Cidara Therapeutics and CohBar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cidara Therapeutics and CohBar Inc, you can compare the effects of market volatilities on Cidara Therapeutics and CohBar 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 Cidara Therapeutics with a short position of CohBar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cidara Therapeutics and CohBar.
Diversification Opportunities for Cidara Therapeutics and CohBar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cidara and CohBar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cidara Therapeutics and CohBar Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CohBar Inc and Cidara 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 Cidara Therapeutics are associated (or correlated) with CohBar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CohBar Inc has no effect on the direction of Cidara Therapeutics i.e., Cidara Therapeutics and CohBar go up and down completely randomly.
Pair Corralation between Cidara Therapeutics and CohBar
If you would invest 3,200 in Cidara Therapeutics on November 9, 2024 and sell it today you would lose (1,077) from holding Cidara Therapeutics or give up 33.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cidara Therapeutics vs. CohBar Inc
Performance |
| Timeline |
| Cidara Therapeutics |
| CohBar Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cidara Therapeutics and CohBar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cidara Therapeutics and CohBar
The main advantage of trading using opposite Cidara Therapeutics and CohBar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cidara Therapeutics position performs unexpectedly, CohBar 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 CohBar will offset losses from the drop in CohBar's long position.| Cidara Therapeutics vs. CytomX Therapeutics | Cidara Therapeutics vs. Clearside Biomedical | Cidara Therapeutics vs. GlycoMimetics |
| CohBar vs. Enveric Biosciences | CohBar vs. Elevation Oncology | CohBar vs. Hepion Pharmaceuticals | CohBar vs. Zura Bio Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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