Correlation Between Cullinan Oncology and Gracell Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Cullinan Oncology and Gracell Biotechnologies 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 Gracell Biotechnologies 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 Gracell Biotechnologies, you can compare the effects of market volatilities on Cullinan Oncology and Gracell Biotechnologies 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 Gracell Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullinan Oncology and Gracell Biotechnologies.
Diversification Opportunities for Cullinan Oncology and Gracell Biotechnologies
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cullinan and Gracell is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cullinan Oncology LLC and Gracell Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gracell Biotechnologies 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 Gracell Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gracell Biotechnologies has no effect on the direction of Cullinan Oncology i.e., Cullinan Oncology and Gracell Biotechnologies go up and down completely randomly.
Pair Corralation between Cullinan Oncology and Gracell Biotechnologies
Given the investment horizon of 90 days Cullinan Oncology is expected to generate 5.42 times less return on investment than Gracell Biotechnologies. But when comparing it to its historical volatility, Cullinan Oncology LLC is 1.64 times less risky than Gracell Biotechnologies. It trades about 0.02 of its potential returns per unit of risk. Gracell Biotechnologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 263.00 in Gracell Biotechnologies on August 28, 2024 and sell it today you would earn a total of 139.00 from holding Gracell Biotechnologies or generate 52.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.72% |
| Values | Daily Returns |
Cullinan Oncology LLC vs. Gracell Biotechnologies
Performance |
| Timeline |
| Cullinan Oncology LLC |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cullinan Oncology and Gracell Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullinan Oncology and Gracell Biotechnologies
The main advantage of trading using opposite Cullinan Oncology and Gracell Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullinan Oncology position performs unexpectedly, Gracell Biotechnologies 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 Gracell Biotechnologies will offset losses from the drop in Gracell Biotechnologies' long position.| Cullinan Oncology vs. Bolt Biotherapeutics | Cullinan Oncology vs. Day One Biopharmaceuticals | Cullinan Oncology vs. Lyra Therapeutics | Cullinan Oncology vs. Autolus Therapeutics |
| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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