Correlation Between Cullinan Oncology and Relay Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cullinan Oncology and Relay 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 Relay 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 Relay Therapeutics, you can compare the effects of market volatilities on Cullinan Oncology and Relay 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 Relay Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullinan Oncology and Relay Therapeutics.
Diversification Opportunities for Cullinan Oncology and Relay Therapeutics
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cullinan and Relay is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cullinan Oncology LLC and Relay Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Relay 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 Relay Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Relay Therapeutics has no effect on the direction of Cullinan Oncology i.e., Cullinan Oncology and Relay Therapeutics go up and down completely randomly.
Pair Corralation between Cullinan Oncology and Relay Therapeutics
Given the investment horizon of 90 days Cullinan Oncology LLC is expected to generate 0.79 times more return on investment than Relay Therapeutics. However, Cullinan Oncology LLC is 1.26 times less risky than Relay Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Relay Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 1,182 in Cullinan Oncology LLC on August 28, 2024 and sell it today you would earn a total of 72.00 from holding Cullinan Oncology LLC or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullinan Oncology LLC vs. Relay Therapeutics
Performance |
| Timeline |
| Cullinan Oncology LLC |
| Relay Therapeutics |
Cullinan Oncology and Relay Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullinan Oncology and Relay Therapeutics
The main advantage of trading using opposite Cullinan Oncology and Relay Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullinan Oncology position performs unexpectedly, Relay 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 Relay Therapeutics will offset losses from the drop in Relay Therapeutics' long position.| Cullinan Oncology vs. Bolt Biotherapeutics | Cullinan Oncology vs. Day One Biopharmaceuticals | Cullinan Oncology vs. Lyra Therapeutics | Cullinan Oncology vs. Autolus Therapeutics |
| Relay Therapeutics vs. Stoke Therapeutics | Relay Therapeutics vs. Pliant Therapeutics | Relay Therapeutics vs. Black Diamond Therapeutics | Relay Therapeutics vs. Arvinas |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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