Correlation Between Cingulate and Bellicum Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Cingulate and Bellicum Pharmaceuticals 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 Cingulate and Bellicum Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate and Bellicum Pharmaceuticals, you can compare the effects of market volatilities on Cingulate and Bellicum Pharmaceuticals 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 Cingulate with a short position of Bellicum Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate and Bellicum Pharmaceuticals.
Diversification Opportunities for Cingulate and Bellicum Pharmaceuticals
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cingulate and Bellicum is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate and Bellicum Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellicum Pharmaceuticals and Cingulate 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 Cingulate are associated (or correlated) with Bellicum Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellicum Pharmaceuticals has no effect on the direction of Cingulate i.e., Cingulate and Bellicum Pharmaceuticals go up and down completely randomly.
Pair Corralation between Cingulate and Bellicum Pharmaceuticals
Given the investment horizon of 90 days Cingulate is expected to generate 2.82 times less return on investment than Bellicum Pharmaceuticals. But when comparing it to its historical volatility, Cingulate is 1.06 times less risky than Bellicum Pharmaceuticals. It trades about 0.01 of its potential returns per unit of risk. Bellicum Pharmaceuticals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 99.00 in Bellicum Pharmaceuticals on August 27, 2024 and sell it today you would lose (62.00) from holding Bellicum Pharmaceuticals or give up 62.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 26.01% |
| Values | Daily Returns |
Cingulate vs. Bellicum Pharmaceuticals
Performance |
| Timeline |
| Cingulate |
| Bellicum Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cingulate and Bellicum Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate and Bellicum Pharmaceuticals
The main advantage of trading using opposite Cingulate and Bellicum Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate position performs unexpectedly, Bellicum Pharmaceuticals 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 Bellicum Pharmaceuticals will offset losses from the drop in Bellicum Pharmaceuticals' long position.| Cingulate vs. Eliem Therapeutics | Cingulate vs. HCW Biologics | Cingulate vs. Scpharmaceuticals | Cingulate vs. Milestone Pharmaceuticals |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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