Correlation Between Cullinan Oncology and Cogent Biosciences

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cullinan Oncology and Cogent 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 Cullinan Oncology and Cogent Biosciences 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 Cogent Biosciences, you can compare the effects of market volatilities on Cullinan Oncology and Cogent 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 Cullinan Oncology with a short position of Cogent Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullinan Oncology and Cogent Biosciences.

Diversification Opportunities for Cullinan Oncology and Cogent Biosciences

CullinanCogentDiversified AwayCullinanCogentDiversified Away100%
0.48
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Cullinan and Cogent is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cullinan Oncology LLC and Cogent Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Biosciences 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 Cogent Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Biosciences has no effect on the direction of Cullinan Oncology i.e., Cullinan Oncology and Cogent Biosciences go up and down completely randomly.

Pair Corralation between Cullinan Oncology and Cogent Biosciences

Given the investment horizon of 90 days Cullinan Oncology LLC is expected to generate 0.59 times more return on investment than Cogent Biosciences. However, Cullinan Oncology LLC is 1.71 times less risky than Cogent Biosciences. It trades about -0.64 of its potential returns per unit of risk. Cogent Biosciences is currently generating about -0.39 per unit of risk. If you would invest  1,125  in Cullinan Oncology LLC on November 30, 2024 and sell it today you would lose (264.00) from holding Cullinan Oncology LLC or give up 23.47% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Cullinan Oncology LLC  vs.  Cogent Biosciences

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -25-20-15-10-505
JavaScript chart by amCharts 3.21.15CGEM COGT
       Timeline  
Cullinan Oncology LLC 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cullinan Oncology LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb910111213
Cogent Biosciences 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cogent Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6.577.588.599.51010.5

Cullinan Oncology and Cogent Biosciences Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.36-4.01-2.67-1.32-0.02241.12.233.364.495.63 0.0300.0350.040
JavaScript chart by amCharts 3.21.15CGEM COGT
       Returns  

Pair Trading with Cullinan Oncology and Cogent Biosciences

The main advantage of trading using opposite Cullinan Oncology and Cogent Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullinan Oncology position performs unexpectedly, Cogent 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 Cogent Biosciences will offset losses from the drop in Cogent Biosciences' long position.
The idea behind Cullinan Oncology LLC and Cogent Biosciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Fundamental Analysis
View fundamental data based on most recent published financial statements
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Share Portfolio
Track or share privately all of your investments from the convenience of any device