Correlation Between Cullinan Oncology and Autolus Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cullinan Oncology and Autolus Therapeutics 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 Cullinan Oncology and Autolus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullinan Oncology LLC and Autolus Therapeutics, you can compare the effects of market volatilities on Cullinan Oncology and Autolus Therapeutics 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 Cullinan Oncology with a short position of Autolus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullinan Oncology and Autolus Therapeutics.
Diversification Opportunities for Cullinan Oncology and Autolus Therapeutics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cullinan and Autolus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cullinan Oncology LLC and Autolus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autolus Therapeutics and Cullinan Oncology 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 Cullinan Oncology LLC are associated (or correlated) with Autolus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autolus Therapeutics has no effect on the direction of Cullinan Oncology i.e., Cullinan Oncology and Autolus Therapeutics go up and down completely randomly.
Pair Corralation between Cullinan Oncology and Autolus Therapeutics
Given the investment horizon of 90 days Cullinan Oncology LLC is expected to under-perform the Autolus Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Cullinan Oncology LLC is 1.04 times less risky than Autolus Therapeutics. The stock trades about -0.36 of its potential returns per unit of risk. The Autolus Therapeutics is currently generating about -0.31 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Autolus Therapeutics on November 29, 2024 and sell it today you would lose (38.00) from holding Autolus Therapeutics or give up 17.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullinan Oncology LLC vs. Autolus Therapeutics
Performance |
| Timeline |
| Cullinan Oncology LLC |
| Autolus Therapeutics |
Cullinan Oncology and Autolus Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullinan Oncology and Autolus Therapeutics
The main advantage of trading using opposite Cullinan Oncology and Autolus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullinan Oncology position performs unexpectedly, Autolus Therapeutics 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 Autolus Therapeutics will offset losses from the drop in Autolus Therapeutics' long position.| Cullinan Oncology vs. Bolt Biotherapeutics | Cullinan Oncology vs. Day One Biopharmaceuticals | Cullinan Oncology vs. Lyra Therapeutics | Cullinan Oncology vs. Autolus Therapeutics |
| Autolus Therapeutics vs. Cullinan Oncology LLC | Autolus Therapeutics vs. Bolt Biotherapeutics | Autolus Therapeutics vs. Day One Biopharmaceuticals | Autolus Therapeutics vs. Lyra 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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